Everyone recognizes that's a joke because obviously the number and shape of the pieces doesn't affect the size of the pizza. And similarly, the stocks, bonds, warrants, etc., issued don't affect the aggregate value of the firm.

So everybody has some information. The function of the markets is to aggregate that information, evaluate it, and get it incorporated into prices.

The slide in stocks is a positive for bonds. Further stocks declines will damp individuals' sentiment and could affect growth.

Falling stocks can prompt some buying of bonds.

I've just done a commercial in the U.S. in which I talk about stocks, shares and bonds. Everyone is amazed. They ask me: 'You really know about that stuff or did you just learn it for the commercial?' I tell them I wouldn't do it unless I understood and had an interest.

When growth is slower-than-expected, stocks go down. When inflation is higher-than-expected, bonds go down. When inflation is lower-than-expected, bonds go up.