Allowing emotions to rule your investment strategy is, and always has been, a recipe for disaster. All great investors follow a strict diet of discipline, strategy and risk management.
The early days of the New Year are a good time to reflect and consider the year past.
2017 WAS ONE OF THE BEST YEARS FOR EQUITY MARKETS IN RECENT TIMES.
Interest rates remained very low and bond yields remained very low globally. Thanks to which, stock markets globally rose by about 20%.
WARREN BUFFET ALWAYS TELLS YOU THAT THE FORECAST WILL TELL YOU MORE ABOUT THE FORECASTER THAN THE FUTURE.
Just because the earth went around the Sun over the course of the year, it has nothing to do with the business cycle. A change in calendar year doesn’t change really change the way you look at long term life goals and investments.
IF YOU HAVE INVESTED IN GOOD INVESTMENTS AND ARE FOCUSED ON YOUR GOALS,IT DOESN’T MATTER WHAT THE OUTLOOK FOR 2018 OR 2019 IS.
That said, 2018 will be a year of steady growth. Indian markets will continue to do well against the backdrop of ongoing reforms and expansion.
It may be right to expect volatility with some state elections coming and budget announcements in the near term. Be that as it may, India is set for much stronger growth in the next 12 months.
Yes, the fiscal deficit has moved up, but for the last 3 years the present government has been tightening its belt.
Also, global growth is strong and India’s export will continue to be strong. Domestic consumption looks very strong.
Strong government expenditure, strong exports, robust consumption, and recovering private capex mean India continues to offer better investment opportunities for the international investors. Corporate earnings will do well.
THERE IS A SHIFT TAKING PLACE IN A HOUSEHOLD BALANCE SHEETS
A confluence of various factors like under performing Gold, real estate, low returns on bank savings, etc, have persuaded investors to shift their investment focus to capital markets. This is helping domestic liquidity.
The government’s thrust on infrastructure augmentation and affordable housing for all will be key drivers for employment generation. Formalisation of the economy due to GST and stable rural growth will help the economy in big way.
TO SUM UP: India is still firing on all cylinders. We have a positive outlook and we think it is right to continue with higher equity allocation. We will continue to identify investment opportunities that will help you to meet your goals.