The Times They Are A-Changin'
2024 has gotten off to a choppy start with the market mood fluctuating between euphoria and panic, almost overnight. What does one do in such a scenario? How does an investor navigate through such choppy waters? Let's step back a little. Central Banks across the world have put a pause to the incessant rate hikes that we witnessed in the post Russia - Ukraine conflict era. The US Fed have also hinted at the possibility of rate cuts happening in the calendar year 2024. Once we have the first rate cut from the US Fed, Central Banks across the world will begin to follow suite. Applying simple logic and Economics 101, this points towards: 1. Strong US economic output 2. Strong US stock market performance 3. Strong US bond market performance 4. Strong funds flow into the US markets and hence, a stronger US dollar 5. Some capital flows overflowing to stable and promising emerging markets like India Increasing spending power of US based companies along with a stronger dollar against our r...