What is an Asset Class?

By moneyredpill | MoneyRedPill | 12 Mar 2020


An asset class is a group of similar types of publicly-available investments.  These securities share similar features and thus typically behave similarly in the marketplace. For example, if you only invested in broccoli, cucumbers, and tomatoes, your general asset class exposure would be ‘vegetables.’ It is commonly recommended to have a diverse portfolio with exposure to all or most asset classes in order to benefit from disproportionate asset gains and mitigate risk in disproportionate asset losses.

The most common asset classes are:

  • Stocks (Equities)

  • Bonds (Fixed-income)

  • Property (Real Estate)

  • Commodities (Gold, Silver, Oil, Grains, Livestock)

  • Infrastructure (Highways, Airports, Railroads, Utility Provider, Energy Storage/Distribution)

  • Cash (Savings, Currencies)

  • Crypto (Bitcoin, Ether)

LT asset class.jpg

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