When One Should Worry About Money

If you are faint-hearted, financial markets could scare you right now.

- Rajas Kelkar

There is volatility due to everyday buying and selling of shares, bonds or commodities. Then, there is volatility, as we are witnessing now. It is a peculiar situation triggered by uncertainty. Financial markets wobble when they do not know what lies ahead. It is essential to know that you are a saver and an investor. The uncertainty that affects financial markets worldwide is bound to create doubts in your mind. You need to follow lead indicators that could help you make sense of the situation and take appropriate action.

Inflation and Interest rates If you are a saver, your money is influenced mainly by inflation and interest rates. The latest monetary policy update from the Reserve Bank of India expects inflation to hover around 4% for 2025-26. That is lower than the average consumer price inflation in India of 4.7% in 2024-25. You need to observe the yield curve in the bond market to get a sense of the direction. Trillions of dollars move across bond markets where yields indicate the economic outlook.