Protests to Mandate
The widening inequality has created a larger rift among populations across the world and especially in the western world. The consequences of which are the rhetoric turning into mandates like the case of Brexit and Trump wins.
As earlier mentioned in our Brexit brief, the constant wailing against globalisation and free trade would only create more harm. Any step towards protectionism is not a good sign. Hope President Trump lives up to his speech delivered after winning. Congratulations Mr. Trump !!!
Wa₹ on Black Money
The late evening PM's speech has awed most while bringing joy to the general public. A dedicated effort was made in the last few months by bringing in various bills & actions like Jan Dhan Yojna (bank a/c), Aadhar linking, UPI, NPA crackdown, Benami transaction bill, Voluntary IDS, increased IT raids & curbing shell Cos, etc. thus creating an infrastructure to fight out the black money. Also, the constant influx of the counterfeits has only made the decision more drastic and imminent.
What's in it for you
Equity: The current knee-jerk reaction and the volatility stemming out of any global news is a welcome sign to enter or top-up the equity portions over and above the staggered investments.
In vogue: Large Caps, Hybrid equity (balanced)
Debt: With the structural changes of currency discontinuation and moderated fresh cash flows along with the rangebound oil, the inflation is well tamed. We expect the rates to further be cut in the coming months. This hence is the time to lock-in better longer term interest rates.
In vogue: MIP, Corporate FD
Commodities: Oil would continue to be under pressure despite the OPEC deal. Gold would see a bit of uptick due to both the domestic & international environment. Food prices would be subdued due to better harvest and larger base of last year.
