“Trump- Will he trump or will he trump others”
World will watch- Intelligent people will act:-) This is what is happening for ages:-) US with 20 trillion$ debt is a concern which we need to watch. Trump is nothing but one more passing cloud. There is no permanent solution for this debt which is only going to turn to a bubble before it bursts.
Growth can improve but not significantly. Interest rates will be low as no one wants more burden in this fragile economy and we will continue our bear markets in the bond markets which started in 1970’s. Equities need to do well with some recovery in corporate earnings. One thing we need to understand is what ever happens to the job market either job created in India or US or else where companies are equipped to ship anywhere and still will make their bottom-line. Good US economy will always be good for the world economy. With buoyant economic activity and OPEC crude cut, there will be signs and already showing signs of Crude moving up. Don’t be surprised if we see our Petrol and Diesel touching Rs 100 in the next 2 years.
More money into riskier assets like equities and commodities, there will be more safe heaven investments that is Gold and Silver( Bullion) . We believe that Gold will be the biggest beneficiary in this entire move. Currently at 1200$ per ounce or 28600 Rs per 10 gram, we see a rise of the bull market in this metal. We feel there is an upside of 50-70% on this metal. Bonds have given the best returns in the last 7 years and we feel that era is come to a end and the next 7 years will be Bullion and Equity.
Investments to be planned for the next 5-8 months as there will be lot of turbulence before the rise. Prolong your investment during this period at every dips rather than timing the market.
We wish you happy investing and have a great rally ahead!