The markets have intense spells when politics prevails over everything else in directing sentiment. Closer to every general election, this trend returns to haunt the markets. (2/n)
But, the ability of politics to drive sentiment is influenced by how much the outcome of the election will drive change. If change is likely to be significant and for the better, the markets can run up ahead of elections. (3/n)
The markets go up too quickly when people are least prepared for it. That setting is perfect for us to get that fear of missing out. We call it the FOMO feeling. (2/n)
The markets seem to be progressively losing steam. This would show up as weak sentiment, selling pressure, lower volumes on exchanges, and FII outflows. (2/n)
But, there is also a section of domestic investors showing remarkable resilience and persistence in their investing. They are still buying every dip and gradually scaling up their portfolios. (3/n)
Investment decisions can be taken based on tax implications. There is a natural tendency among investors to be drawn to investments where they feel taxes are lower. (2/n)
The last week has caused a significant reset in our investing. We are once again worried about how global factors will come to hurt. Banking, which is the bed rock of every economy looks like the most rattled space in the west. (2/n)
When smaller banks look weak, they create a systematic scare which needs to be urgently addressed. What we are seeing in the US is a rush to douse the fire that can damage far more than we can imagine. (3/n)
Highlights from the keynote address made by Mr. Deepak Bagla, Managing Director & CEO of Invest India at the Standard Chartered Treasury Leadership Forum 2023.
This is the first time in the history of India’s 5000 years of existence, that the 3 pillars are going through a rapid transformation at the same point in time.
The 3 Pillars:
- Economic
- Social
- Political (3/n)