“THE YEAR GONE BY….”
“THE YEAR GONE BY….” (5TH EDITION) is an annual ritual followed by Cedrus Wealth Partners to enlighten the investors on the behaviour of various assets classes in the past year and how the establishment wants them to perform in the upcoming year.
INDIAN EQUITY MARKETS saw one of the biggest rallies in the recent years with government implementing GST and the micros behaving favourably. Domestic fund flows through mutual funds was the highest in history because of demonetisation, lower bank rates and low interest in real estate. Domestic record inflows with flows from foreign investors saw the indices move to their record highs. Post budget with the long-term capital gains coming back on equities, Fed hiking interest rates and political instability stock markets have corrected, which we see as a healthy sign for a sustainable long-term bull market.
BOND MARKETS have seen yields creep up this year with fiscal and inflationary pressure increasing due to increase in oil prices, big-ticket defaults in PSU banks and populist government spending as we enter an election year in 2019. With RBI’s hawkish stand on inflation and government deficits and global bond yields moving up we expect to go ahead interest rates to remain sticky this year. We recommend an accrual strategy on a fixed income as 10-year government bond inches to the 8% levels.
GOLD has been range bound last year, moving in a narrow range. We expect this year with a global increase in oil prices and interest rates and expected depreciation in rupee this asset class which has been stagnant for a long time should start moving up.
RUPEE has been resilient and has not depreciated since past few years on account of consistent FII inflows, lower inflation and improved fiscal situation. Rupee has started depreciating since the past few months and we expect this to continue with FIIs pulling out of Indian equity and debt markets due to hardening interest rates globally, political uncertainty as we enter an election year and oil moving up.
REAL ESTATE in all major cities continued to be subdued as investors remained pessimistic on the future and RERA being implemented. Only real estate players with a proven track record have witnessed sales but prices remained under pressure. We expect the optimism to come back in the residential space with RERA becoming a reality due to which the uncertainty revolving around project completion will be reduced, though prices may not move up.
GLOBAL EQUITY MARKETS have seen a rally this year with US equity markets touching new highs. We expect halt on the global rally in the coming year with rising in interest rates, oil moving up and expected trade wars because of Trump's US strategy.
Report Card In NutShell
We, Cedrus Wealth Partners thank you all, for entrusting us and hope to accompany you for your successful future endeavours in this journey of wealth creation.
Get in touch with us to know more about wealth management.
Visit our website: http://cedruswealth.com
OR
Email: mygoal@cedruswealth.com
Follows us on Social Media for regular updates.
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Here are some of the key points to take away which shows the overall buildout of the previous year on how it strived in the investment market.
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| Photo Credit: http://bwdisrupt.businessworld.in |
BOND MARKETS have seen yields creep up this year with fiscal and inflationary pressure increasing due to increase in oil prices, big-ticket defaults in PSU banks and populist government spending as we enter an election year in 2019. With RBI’s hawkish stand on inflation and government deficits and global bond yields moving up we expect to go ahead interest rates to remain sticky this year. We recommend an accrual strategy on a fixed income as 10-year government bond inches to the 8% levels.
GOLD has been range bound last year, moving in a narrow range. We expect this year with a global increase in oil prices and interest rates and expected depreciation in rupee this asset class which has been stagnant for a long time should start moving up.
RUPEE has been resilient and has not depreciated since past few years on account of consistent FII inflows, lower inflation and improved fiscal situation. Rupee has started depreciating since the past few months and we expect this to continue with FIIs pulling out of Indian equity and debt markets due to hardening interest rates globally, political uncertainty as we enter an election year and oil moving up.
REAL ESTATE in all major cities continued to be subdued as investors remained pessimistic on the future and RERA being implemented. Only real estate players with a proven track record have witnessed sales but prices remained under pressure. We expect the optimism to come back in the residential space with RERA becoming a reality due to which the uncertainty revolving around project completion will be reduced, though prices may not move up.
GLOBAL EQUITY MARKETS have seen a rally this year with US equity markets touching new highs. We expect halt on the global rally in the coming year with rising in interest rates, oil moving up and expected trade wars because of Trump's US strategy.
Report Card In NutShell
2017-18
|
2017-18
|
2018-19
| ||
Sr. No.
|
Asset Class
|
What we expected
|
How they performed
|
Expectation for the upcoming year
|
1
|
Indian Equity
|
OutPerformed
|
OutPerformed
|
UnderPerformed
|
2
|
Global Equities
|
OutPerformed
|
OutPerformed
|
Down
|
3
|
Interest Rates
|
Down
|
Up
|
Neutral
|
4
|
Gold
|
UnderPerformed
|
UnderPerformed
|
OutPerformed
|
5
|
Rupee
|
Strong
|
Strong
|
Weak
|
6
|
Real Estate
|
Recover
|
UnderPerformed
|
Recover
|
We, Cedrus Wealth Partners thank you all, for entrusting us and hope to accompany you for your successful future endeavours in this journey of wealth creation.
Get in touch with us to know more about wealth management.
Visit our website: http://cedruswealth.com
OR
Email: mygoal@cedruswealth.com
Follows us on Social Media for regular updates.
Facebook | LinkenIN
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