Thread by @ithoughtconnect

A confluence of unprecedented events in 2022 weakened asset prices across all markets. (1/n)

#assetallocation #investing #personalfinance #throwback #thread

The Fed’s pivot to a less aggressive monetary policy is likely to set the tone for the markets in 2023. (2/n)

#FED #FederalReserve #monetarypolicy

It is expected that global inflation will continue to be higher in this decade, in combination with a significant slowdown of the U.S. economy. (3/n)

#inflation #interestrates #globalmarket

Macro headwinds have been building, as high prices and aggressive central bank tightening have started to curb consumption, which may cause a sub-trend growth outlook in 2023. (4/n)

#centralbanks #economy

While the U.S. dollar has started to weaken, it is still at very strong historical levels. If it continues to weaken in 2023, that would certainly be good for EM debt priced in non-dollar local currencies. For eg: India. (5/n)

#USDollars #currency

During the 2010s EM equities suffered their worst performance as an asset class going as far back as the 1930s. Fast forward 10 years and most emerging countries like India, Brazil, & Indonesia started the 2020s in much better shape economically than in the previous decade. (6/n)

OPEC’s recent decision to cut production quotas underscores the role that high prices play to incentivize investment. A fall in prices now could disincentivize investment and lead to higher prices when demand recovers. (7/n)

#Petrol #exports

The reopening of China poses an opportunity for capturing global growth since it makes up nearly 1/5th of the global GDP and the prospect of a sharp upswing at a time of slow global growth is enticing. (8/n)

#globalmarkets #GDP #economy

India is projected to grow at a healthy 6.9% in 2022-2023 - at a time when global GDP is expected to slow down to 2.7% from 3.2%. It is estimated that CAD will be at 3.6% of GDP and fiscal deficit budgeted at 6.4% of GDP in 2022-23. (9/n)

#india #economy #GDP

With Indian markets outperforming global peers and valuations remaining fair, expect a year full of uncertainty. (10/n)

#stockmarketindia #sensex #bse

Uncertainty only means opportunities opening across the board. The debt market is set to offer better returns than in the past, with short-term duration funds offering the best risk-reward ratio. (11/n)

#debtmarket #investing #debtfunds

The best time to enter the debt market is when interest rates stabilise as central banks take a pause. (12/n)

#debt #fixedincome #interestrates

The mantra for 2023 is to continue practising prudent asset allocation and being systematic with equity and debt investing. (13/n)

#assetallocation #equity #debt #gold