There is saying in the investment markets: “There is always an investing opportunity in any market condition.” However, if we take a look at the current market situation it really is difficult to convince oneself on identifying any investment opportunities. The global markets are spooked and the panic is widespread even as the US and Indian benchmark indices take a free fall, recording the biggest single downward spiral, in absolute terms as seen in table 1. What is disturbing the markets is known to most market participants but what is not known is the extent of damage this whole motley of factors is going to cause and for how long the ‘risk off ’ mode in the investing world will exist.
It does look like the crash in crude oil prices and the economic and political repercussions that it may have on global markets is a bigger concern for investors than the spread of the coronavirus. It is not that the crude oil prices have never crashed before; it’s just that the triggers behind the fall are worrying the markets. In 2008, the crude oil prices touched a low of USD 32.40 per barrel. Ten years ago, the slump was attributed to demand side problems. In 2016, the crude oil prices crashed again and touched a new low of USD 26.05 per barrel with the fall attributed to supply side problems. The recent slump in crude oil prices, however, is attributed to not only the demand and supply hits but also to the unprecedented price war triggered between the oil producers.
Doubts and Fears
Denne historien er fra March 16, 2020-utgaven av Dalal Street Investment Journal.
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Denne historien er fra March 16, 2020-utgaven av Dalal Street Investment Journal.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
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U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
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Mastering Investment with Information Ratio
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❝Technology is the new game-changer"
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What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
