FT News Briefing The index of everything
Jul 14, 2021
Despite regulatory scrutiny, Visa and Mastercard continue to facilitate connections between Binance and the financial world. Unexpected inflation rates are causing concern, particularly in travel and essential goods. The intriguing concept of an 'index of everything' is explored, highlighting its potential to revolutionize investment strategies. Challenges in creating this comprehensive index are discussed, along with the impactful role of technological advancements in the finance sector.
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Indexing Explained
- Indexing measures asset class performance like stocks, bonds, and commodities.
- It's become very profitable and influential for building investment products.
The "Everything Index"
- Investors seek a diversified 'everything index' including stocks, bonds, real estate, and private equity.
- This minimizes downside risk during periods when specific asset classes decline.
Index of Everything: Pros & Cons
- An "everything index" offers a cheap, simple product useful for nearly everyone.
- However, complexity in private markets makes data collection and investable index creation challenging.