Wealocity's perspective on market happenings  Monthly Market Commentary May'17

Monthly Market Commentary “it’s not the things you buy and sell that make you money; it’s the things you hold.” ~ Howard Marks It's been an eventful month. With domestic bourses touching new highs and entering uncharted territories, thanks to the unabated domestic as well as foreign fund flows, it's getting a bit jittery. India's share in the world m-cap rose to 2.7% above the LTA of 2.4% while contributing to a 34% m-cap change in the last 12 months.

French Elections Macron Wins This is decisive and truly En Marche! beating the far right Le Pen; especially for Europe which is reeling from the Brexit decision. South Korea Moon Wins This moderate leader's win is critical as it comes amid the North's increased shenanigans. He said that he wouldn't even shy away visiting North. What's in it for you? Equity The markets always swing between fear and greed. Monies are made in between. Every and any small good news is like opium now for the stock markets. Is it a scenario of sell in May and comeback in September? Don't know, can't say. But, we're wary of the current levels. India On a High We believe in risk to return strategy which makes us follow a disciplined approach that would capture most parts of the raging bull while protecting from the deep falls, thus outperforming in a full cycle. We continue to recommend staggered investments into equity with top-ups in falls.

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Our Mid-monthly Newsletter Edition 1/Vol 5/Apr '17

No, it’s not what you see but it’s how you respond to what you see makes up the market. This 4 yrs old cartoon of Kal depicts that either we’ve not known to live with him or he’s not bothered to accommodate with the world. North Korean leader has found an equally temperamental US President to dodge with and now the world is waiting with bated breath on how the present tussle unfolds. It’s very unfortunate that our rhetoric on geo-politics defining this year is turning true.

This April, May announces election in June. The surprise election call by British Prime Minister Theresa May seems an astute political move. The UK economy suggests to be in a sweet spot, with low unemployment, inflation still not affecting the consumers and none of the Brexit fears yet to materialize into any negative wobbles; what better would it be to consolidate her power while crushing the already disarrayed opposition. Her party, conservatives, have a 21-point poll lead and this snap election could extend the thin lead her predecessor won in ’15; a tactic working in her favor to retain power beyond ’20. Would the French buckle the trend? The protectionist and nationalistic fervor being played by the leaders from North Korea to the US to Australia to their masses is making the world more unstable . Macron and Le Pen are leading in the four-way race while the Fillon and Melenchon close behind moving into the second round of the French Presidential election. Unlike May’s fortunes the early Le Pen fortunes are drifting as the opponents are catching up and hopefully the French voters would clip the protectionist trend by not leaning to any of the extremes. This is of course, overcast with the latest terror attack in Paris.

Copyright © Wealocity, All rights reserved. Our mailing address is: dreams@wealocity.com Disclaimer: All the views expressed are strictly personal and we recommend consulting your financial advisor for making any investment decisions based on your risk appetite, timelines and goals.