Money Versus Markets from Our Friends at Visual Capitalist … Quadrillion Notional Value

The most interesting part of this chart from our friends at Visual Capitalist in our opinion is the synthetic versus notional value of assets… What?

Ok… so we laid some Wall Street Gibberish on you…

All of this is near the end of the chart…

Derivatives …. A synthetic product is basically a product of some type that allows you to use a small amount of money to control a larger amount of assets… most importantly for a defined period of time…..

Used correctly, most of these types of products are for lowering risk, also called hedging…

Used aggressively, these products are speculative and can cause harm to an investors portfolio….

Notional or real value of the assets held by Derivatives are currently a Quadrillion … not a term used frequently… such the interest…

It’s a long chart, but very informative and interesting… take a moment to digest… think it worth it!

 

8-1-20 Visual Cap Money and Markets

 

Hope you enjoyed !

Have a Great “Quadrillion Notional Value” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents

 

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