News By/Courtesy: Anusha G Rao | 02 Jan 2019 17:49pm IST

HIGHLIGHTS

  • The trade war concerns between the world’s biggest economies- the US and China has indeed shaken the global market and may continue to do so.
  • On the domestic level, re-categorization of mutual fund schemes, BSE Mid-cap and small-cap indices losing upto 13%, weakening of rupee to 9.5% , increase in crude oil prices has added to 2018 deficit
  • There is thus an anticipation of mild volatility due all the above reasons along with the upcoming general elections, in the first half of 2019 but the second half of 2019 should remain fairly stable.

The trade war concerns between the world’s biggest economies- the US and China has indeed shaken the global market and may continue to do so. The Quantitative Easing (QE) withdrawal and the subsequent four rate hikes by the US govt led to an increase in the yield globally, thus affecting the returns from fixed income as an asset class. 

The strengthening of the dollar index has indeed added to the investor woes, among other factors such as the UK Brexit, crash of crypto currencies and slowing down of Chinese economy and the infamous oil price hike. While the US-China trade war is round the corner with a 90 truce already declared, a close introspection into these factors show that they were predicted and will smoothen over time. Any corrections during such volatile phases will always provide a good opportunity to invest at lower prices and earn higher returns. 

On the domestic level, re-categorization of mutual fund schemes, BSE Mid-cap and small-cap indices losing upto 13%, weakening of rupee upto 9.5%, jump in crude oil prices and foreign investor capital outflow has added to the deficits of 2018. PNB and IL&FS fiasco remains forever in the books of history. There is thus an anticipation of mild volatility due all the above reasons along with the upcoming general elections, in the first half of 2019. However, second half of 2019 should remain fairly stable, with expectations of 20% of stronger economic growth through stronger macros.

Section Editor: Shreyashi Tiwari | 02 Jan 2019 17:54pm IST


Tags : #Economic #Growth #Second #Half #Equity #Market #Move

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