7 personal finance lessons we learned in 2023
loan repayment. Viral Bhatt, Founder, Money Mantra said, “2023 saw significant market volatility, with geopolitical issues, inflation, and interest rate hikes causing major fluctuations. This highlighted the need for investment strategies that could adjust to changing circumstances, rather than rigid approaches based on past performance." Mohit Ralhan, CEO, TIW Capital added, “2023 turned out to be a year of positive surprises on the macro front.
The US economy, faced with the most aggressive monetary tightening cycle in decades, not just avoided a recession but grew above its potential growth rate. The Federal Reserve has nearly orchestrated a soft landing, chances of which seemed slim at the year beginning. Eurozone and UK economies also fared better than expected.
The common factor underpinning has been the strength of the labour market. While 2023 was all about monitoring the inflation trajectory, 2024 will be about how the labour markets shape up." Geopolitical factors sparking an energy crisis led to a substantial surge in oil prices, exerting a significant impact on the markets. This influence extended to various sectors previously considered insulated from market sentiments.
Bhatt furthered, “Emerging risks like cyberattacks and climate change, became more prominent in 2023. This emphasized the importance of diversifying portfolios beyond traditional assets to mitigate potential losses from unexpected sources." Following the Covid pandemic, concerns arose about a potential K-shaped recovery, but growth has now become more widespread. Notably, China’s recovery has been relatively subdued.
Read more on livemint.com
