Global Relative Values

In one picture, think of these colored blocks as the building blocks of our entire financial global world.

Each block represents the total value of all assets associated with that type - and in one picture we can easily see the relative value across the major asset types.

While this is a major experiment to tackle inflation (raising interest rates) - housing costs are also a global dynamic - residential and commercial real estate is largely financed so an increased interest cost goes to the heart of real estate cost (cash flow) and values (net equity).

This is a Macro perspective - while true at a global level, as we've shown this is true for the consumer, the Micro perspective.

Real estate tends to be the single largest asset of the consumer, followed by bonds and equities. Global GDP is all the production you have in your household and Global Money is all the income and cash flow you have at your disposal. Gold and Crypto are probably a small part of your wealth, and FAANG in dark blue is just a relative value to show how a small number of stocks continue to be a key indictor of market health.

Coaching Tip: You can often have a bigger impact managing Real Estate (lending) for your clients than any other area of their financial life - except their Global Money supply (aka how they handle their overall finances)