Finance

Stock market capitalisation plays a significant role in creating wealth for the population, and often draws the attention of financial authorities. But what drives capitalisation growth and what is its ‘optimal’ size? Some of the answers can be found in economic science.

The Russian market is assimilating key green financial instruments: bonds, corporate lending, and mortgages. However, there are other forms of sustainable finance that could also potentially take root in the market.

Cryptocurrencies have become a riskier asset than they once were and no longer add diversification to investment portfolios. Cryptoassets more and more resemble lottery tickets in terms of risk profile.

AI has become a tool of creative destruction. Companies that incorporate it into their business models will set the tone for the development of their sectors in the coming years. Perhaps AI will also cause a realignment in the trade and economic alliances of countries.

Global lenders are focused on financing development projects in good times. In times of crisis, they switch to stabilisation loans and become ‘firefighters’. This is the role being increasingly played by development banks, data from 11 countries of the Eurasian region show.

Exchange-traded funds (ETFs) are gradually supplanting all other types of funds in the financial market. Their rampant growth makes it simpler for millions of investors to enter markets. However, their expected dominance might have effects that are yet to be explored.

New legislative requirements for communication with non-qualified investors are meant to enhance the protection of individuals in financial markets and increase market transparency by providing more comprehensive information about financial products to investors.

Experiments show that cats, monkeys, and deer can often ‘compose’ more profitable investment portfolios than those of professional investors. However, one should not rely on luck when investing.