Mid 2022 Investment Outlook: What’s The Way Forward?
The Russia-Ukraine crisis puts a damper on our efforts to recoup and flourish as the world economy begins to recover from its Covid-rattled state. This article offers a basic viewpoint on the investment picture until mid-2022 to help you along your investing path!
Now, inflation is a huge problem. The majority of the items on our consumption list are getting more expensive. Globally, several Central Banks and Governments are addressing these times in accordance with their different roles. Many domestic as well as international issues must be considered as we share our investment view through mid-2022 and the path forward. High volatility is being reflected in the financial markets. Do we have to do something remarkable at this time?
You don't need to panic despite news about the Russia-Ukraine situation mentioning increased gas and oil prices, food inflation, and industrial failures. You need not be concerned about the short- and medium-term instability as long as you are regularly assessing and implementing your financial plan. Air pockets cause even aeroplanes to crash. Investing since 2007 or 2008? You may remember the 2008 financial crisis. What springs to mind? Was investing simple during that stage? The Sensex began trading at 21,325 points in January 2008. Sensex ended December 2008 at 9,647 points (more than 50 percent fall). Sensex fluctuated and reached 21,170 in December 2013.
Basically, it took about 5 years to break-even.
Our problems were mainly due to the sell-off by foreign institutional investors in the domestic equity markets leading to a sharp reduction in net capital inflows and the sharp slowdown in global economic activity and external demand. On the other hand, it is important to critically analyse the 10 year Bond yield curve during 2008 to 2013 period.