There is a higher chance that FM will focus more on Govt spending means more capital expenditure, reduction in fiscal deficit and lower borrowings rather than reducing the individual tax slabs or providing subsidies to individuals in Union Budget 2024-25.
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As expected Trump is leading in the US elections, if Trump become the next US President then bulls will control the markets and it will showcase the V shape recovery.
Markets under pressure due to following factors:
· Weak quarterly corporate earnings
· Geo political tensions in Middle East
· FPIs Selling, attractive Chinese valuations
· Rise in US Bond Yields
· US Elections
· Upcoming Fed Monetary Policy
I am more bullish on the bond market compared to the equities for the next one year. With regards to risk return matrix, bonds have higher potential to generate better returns than any other assets class. Allocate ur fresh money more in bonds/Gilt.
Bears grips the market recently due to following reasons:
1) Escalating tensions in Middle East
2) Surge in crude oil price
3) Regulatory changes in the F&O Segment
4) Selling by FPIs
One should not fear about the volatility of market & stay invested as per the investment horizon
@ArvindKejriwal How mohalla clinics of Delhi are working. According to my knowledge all of them are non operational as if now and wastage of funds.
I am one of the Delhi citizen.
Considering the risk return matrix, investing in Gilt/Long term Bond Funds would be more fruitful vis a vis equities with the horizon of 1.5-2 years. However if somebody has long term investment then investment in equity funds through SIP or STP make sense.
The US Fed held interest rates steady in recent policy review but policymakers indicated they still expect to reduce them by three-quarters of a percentage point by the end 2024 despite stodgier expected progress towards the US central bank's 2% inflation target. (1/2)
Less Govt. Borrowings & Fiscal Consolidation in FY24-25: During Interim Budget, the gross & net borrowings through dated securities during FY25 r estimated at ₹14.13-lakh cr & ₹11.75-lakh cr, respectively and fiscal deficit for FY24 & FY25 targeted @ 5.8% & 5.1% of GDP. (4/4)
Time to invest in Long Term Bond Funds and Gilt Funds
There are three primary reasons that support the recommendation for investing in Long Term Bond Funds and Gilt Funds: (1/4)
Rate Cuts expected by Cent. Banks: Effective inflation mgmt measures hv helped 2 maintain inflation within comfort zone. Now, it's anticipated that there will be rate cuts in upcoming year, which will exert downward pressure on yields. China has already initiated rate cuts(3/4)