If you’ve been tuned out of financial news until now, you might be wondering where markets stand and what all the jargon means. Here are three key words you’ll likely be hearing this year.
Bulls: When optimism rules
A bull market refers to a period when prices are rising or expected to rise. Investors feel confident, economic conditions look strong, and optimism drives buying. When someone says they’re “bullish,” they believe prices will go up. Think of a bull charging forward. That’s the energy behind a bull market.
Bears: When caution takes over
A bear market is the opposite. Prices are falling or expected to fall, and investors turn cautious. Being “bearish” means expecting declines. Picture a bear swiping downward with its paw. That’s the motion markets take when sentiment turns negative.
Bullion: The timeless asset
Bullion refers to physical precious metals like gold and silver, usually in bars or coins. Gold bullion has been a store of value for centuries, often used to offer protection during uncertain times.
There are two ways to invest in gold bullion:
- Physical form – Buying bars or coins through a gold exchange or dealer. This means handling storage, insurance, and security, which can attract additional holding fees.
- Via an ETF – A simpler and more cost-effective way for most investors. An ETF like the Global X Gold Bullion ETF (GXLD) or Global X Physical Gold Structured ETF (GOLD) gives you exposure to physical gold without the hassle of storing it. You buy and sell units on the ASX just like shares, making it easy and cost-effective.
Investors traditionally allocate 5% to 15%, as both a risk diversifier and a store of value across market cycles.
Expert insight: consider core investments
Global X portfolio manager Jess Leung says those new to investing may want to consider what is called a ‘core’ ETF.
“Core ETFs typically track broad market indices, giving investors exposure to hundreds of companies in a single trade. For someone starting out, this means instant diversification without the need to pick individual stocks,” she says.
They serve as a strong base for any investment strategy. A core ETF can act as the “anchor” of a portfolio, providing stability and consistent market exposure before adding more specialized or thematic investments.
“Core ETFs often come with low management fees compared to actively managed funds,” says Jess. “This is important for new investors who want to minimise costs while building long-term wealth.”
Global X offers six core ETF options:
