Assets are defined as resources with an economic value that a country, company or individual possesses and is expecting them to produce economic benefit in the future.
Assets are listed on balance sheets and are bought or created to help increase an entity’s value or in the future, increase cash flow or help reduce costs or expenses.
In terms of trading, traders may look at a country’s assets to determine the current and possible future conditions of that country’s economy. Examples of such assets may be stockpiles of precious metals such as gold and silver, foreign currency reserves notably US dollars, oil reserves, foreign government bonds, and loans.
Key takeaways:
- A country’s assets and the changes in asset holding can be looked at to help determine the strength of the country’s economy.
- Assets are resources that are expected to produce an economic benefit in the future.
- Assets can be broken down into various asset classes.