Mid-term equity markets: 3 experts analyse its outlook and opportunities
equity markets in the medium term does not present a very rosy picture. A multiplicity of factors, both domestic and global, are weighing against the equities universe. But, take heart, within this uncertainty there is opportunity.
And for the sagacious investor even the opportunity to tidy up his (financial) house. “Everything is against the equity markets," says Abhishek Banerjee, Founder & CEO, Lotusdew Wealth & Investment Advisors. In fact, the US has printed 4.9% GDP growth which might likely get revised up. Wider conflict in the MENA region, depleting household savings, and delinquencies in car loans in the US all remain a risk.
Two wars, the highest ever US interest rates in more than a decade, and compressing margins of Indian business are some of the global points hammering equities. From the domestic perspective, there is an impending election which can result in policy direction cues. Experts are hesitant to hazard a guess as to how markets will pan out in the near term – say the next six months.
“It is impossible to predict which way markets are headed in the next 6 months, and anybody who professes to be able to do so is just trying to make a lucky guess!," says Harsh Gahlaut, CEO, FinEdge. Experts point out that markets have seen a healthy uptrend since March this year, with the bullishness being especially pronounced in the small and mid-cap segments, which is a clear indicator of a broader “risk-on" sentiment. Let us assume a worst case scenario; i.e.
that equities correct from current levels. Here there is good news – you can indeed use such corrections for your benefit. “The fall (in equities in the near term) is likely to be narrow and sector based," says Benerjee.
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