It’s NOT Just Stocks and Bonds…
Most investors think in terms of just two asset classes — stocks and bonds. In this quick lesson, JC Parets explains why that’s a mistake, shares the three key asset classes every serious investor needs to track, and reveals the simple trick he used to remember them back when he was taking his CMT exams.
This clip comes from one of our TrendLabs Friday Lab sessions, where JC breaks down essential concepts and real-time market insights exclusively for members.
JC Parets here…
One of the biggest mistakes I see investors make is thinking it’s all about just two things:
Stocks and bonds.
Stocks and bonds, stocks and bonds… right?
Not so fast.
Let me tell you something. Maybe it’s because I’m old school. I learned from a lot of the OGs in the business, and I’ve been through plenty of cycles myself. But there aren’t just two asset classes.
There are THREE.
Count them: three asset classes, my friends.
And understanding the trends across all three is critically important. Why? Because at the end of the day, we’re all here for one reason — to make money.
I’m fortunate that I was formally trained in technical analysis. I had to take all the exams, earn my CMT — all of that. And one of the very first things you learn — literally day one — is that there are three primary asset classes.
It’s something that people who aren’t formally trained often take for granted. So I’d highly encourage you to keep this front of mind:
It’s not just stocks and bonds. It’s stocks, bonds, and commodities.
And here’s a fun fact. Back when I was younger, studying for all those technical analysis exams, I used a simple trick to remember this. I thought of it as BSC — bonds, stocks, commodities.
Why BSC? Because that was the ticker symbol for Bear Stearns, which was right across the street from where I worked. Kind of hilarious in hindsight, especially since that company doesn’t even exist anymore.
But hey, it helped lock it in.
BSC: bonds, stocks, commodities.
Stay sharp,
JC Parets, CMT
Founder, TrendLabs
June 2025