Concerns

[gausap23]

Concerns:-
Loose Monetary policy adopted by Central Bankers across the world has led to phenomenal rise in almost every Asset class, be it stocks or real estate or commodities.
This has so far managed to keep growth rates of world economy close to 4% and thus increased per capita income of working people(consumers), thereby fuelling more demand for Goods and Services, in turn increasing demand for every commodity.
This circular process is self-feeding and has produced Inflationary pressures across the world, especially in U.S. and India. U.S. economy has grown over 5.4%, leaving many Bears disappointing expecting immediate slowdown in U.S..
This along with growth in China and India will keep Commodities in secular long term Bull Run, keeping investors jittery about Inflationary pressures due to this huge demand and thus concern’s about rise in Interest Rates.
This complex self feeding process will discourage risk-capital take short to medium bold call on prospects of Stock Markets.
Also rising geo-political tensions over Iran, North Korea, Israel-Palestine will keep investors nervous and thus making Financial Markets more Volatile.
Therefore prudent investments made over a basket of Asset classes will be more rewarding and less volatile over the long term.
Due to Uncertainty over above said events, investors must keep GOLD as Hedge against Political Instability, rise in Crude Oil prices, Volatile Stock markets and Depreciating Currency.
Domestic Investment themes(In the Indian Context) might be bought in case of Stocks ( FMCG, MEDIA & ENTERTAINMENT, DEFENCE EQUIPMENT & MANUFACTURES,I.T.,Cement).
Real estate can be bought only after a good correction in the prices.
Rising Interest rates offer Bond Investors good Yield and thus can be looked at.
All the Best.
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