Bond markets are the source of money supply for other asset classes. To that extent, this market fuels price trends in other asset classes
To just say 2020 has been an eventful year would be an understatement. The COVID-19 Pandemic has hit the world hard, pushing it into a pause mode. The economy came under pressure and investors were perplexed. However several asset classes climbed the walls of worry making investors wealthier. In this edition of 3-Point analysis, we find out how various asset classes performed in 2020.
Gold has given close to 24 per cent returns so far this year
Only such advisers can answer your questions well and recommend the next course of action
Asian markets opened with strong gains taking a cue from the higher finish on Wall Street. Japan's January core-core consumer price index (CPI) has come in 0.7 percent higher, compared to positive 0.8 percent in December. Japan‘s Nikkei was up 1.16 percent, while Hang Seng was higher by nearly 1.7 percent.
Jim O'Neil, former chairman of Goldman Asset Management Company says IMF is also predicting that the world economy will grow at 3.8 percent next year, which is not getting enough attention.
Although India has begun to see some attraction from foreign money, mutual fund redemptions still continue and there are no inflows into India-dedicated funds says Cameron Brandt of EPFR.
Diversification will also help in the reduction of risk that is of interest to a lot of investors. Achieving this consistently would require some efforts as well as a new thought process and you should work towards this end.
Christopher Palmer, director of Global Emerging Markets, Henderson Global Investors believes the US Senate's decision on the debt ceiling led to profit taking and a bit of disappointment in the equities market.
Ramalingam K of holisticinvestment.in explains about diversification of investment in your portfolio.
Jayant Nair of MSVentures Financial Planners explains the dilemma behind asset allocation in financial planning.
In an interview to CNBC-TV18, Ananth Narayan of Standard Chartered Bank says the market is tired of quick fix solutions to the Indian big bag of worms- its widening current account deficit (CAD) and low growth.
In an interview to CNBC-TV18, Andrade says that there is has been a reasonable amount of stress in the financial services sector, and it has been an ongoing process for a couple of quarters now.
Policy inaction in the last three-four years has affected all balance sheets whether it is the government balance sheet, corporate or household, all have come under huge attack . The long-term India story is hurt because of the currency, the way it is moving is being questioned not only by foreigners, but also by local investors.
With investors dumping assets ranging from bonds , currencies to equities, there appears to be a lack of hope among investors that central bank policies can generate real economic recovery, said strategists.
Tim Ghriskey, CIO, Solaris Asset Management shares his views on the day's Wall Street action. He says that cash is being moved out of money market and out of fixed income into equities, that trend does not tend to reverse easily.
Atul Suri said the market mood seems to be cautious at the moment and broader market participation is not high. He believes, retail participation is likely when market hits a new high. The global gold prices are flat at the moment and the local gain is largely due to the currency, added Suri.
Arjuna Mahendran of HSBC Private Bank says markets, particularly the ones outside of Asia, are quite comfortable with Obama second term at the White House.
Sushil Kedia of ATMA joins CNBC-TV18 to give his perspective on the technical charts for the market today.
CNBC-TV18's managing editor Udayan Mukherjee says he expects the pullback to extend a few more days. People are banking on Obama's speech to help calm global nerves.
Managers of money for the world's rich are planning to boost investments in emerging markets, global stocks and hedge funds as these asset classes, once deemed risky, become more acceptable amid the developed world's woes, research showed.
Veryan Allen, Head of Research, GFIA Singapore, in an interview on CNBC-TV18 spoke about liquidity and flows and how these asset classes are panning out in the current global environment.
The rally in equity markets has clearly been surpassed by the rally that we have seen in several commodities, notably, gold but not necessarily only gold and silver. Juerg Kiener, MD & CIO of Swiss Asia Capital spoke about how he sees these asset classes likely to perform especially vis-à-vis other asset classes.
Most of the NBFC’s that are listed, will fall under the new rule set out by the RBI of keeping 15% of their risk weight assets in the form of capital. TT Srinivasaraghavan, of Sundaram Finance says that while his company’s capital adequacy is already crossing 15%, he finds the central bank’s directive disappointing.