The short-term factors tend to impact investor emotions and create volatility in the market. However, these are the factors that should be largely ignored since it is the long-term factors that tend to shape the contours of the market and impact your wealth creation journey. It is the long-term factors that you should keep in mind while assessing the current investment backdrop.
Currently, markets are experiencing a fair bit of volatility stemming from geo-political tensions in Europe, rising crude oil prices, and high global inflation on the back of supply side bottlenecks. Other global headwinds include aggressive monetary tightening by global Central Banks, rising external sector risks due to high commodity prices, and a slowdown in private capex. Inarguably, the Indian economy is better placed fundamentally and is likely to continue to grow on a strong footing in the long-term. However, in the short-term, it might be affected by global events. In the medium to long term, our outlook on equities remains positive.
This story is from the August 2022 edition of Investors India.
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This story is from the August 2022 edition of Investors India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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