💼 As investors leave 2024 behind and look forward to the New Year, there will be more concerns than confidence, at least in the early days of 2025.
💼 The biggest concern for stock markets globally is the uncertainty surrounding Trump 2.0. The concern is that since market valuations are high, any negative news might cause corrections.
💼 The resilience of the US economy continues to surprise.
💼 The lower-than-expected jobless claims have pushed the US 10-year bond yield to 4.62%. This will be a headwind for stock markets globally and particularly for emerging markets, where FIIs might continue to sell.
💼 A risk-free yield of 4.62% from the safest asset class in the world will continue to lure FIIs to sell in emerging markets like India and move the money to US bonds.
💼 In the recent market correction in India, IT and banking stocks have remained reasonably resilient, primarily due to their fair valuations.
💼 Investors should exercise caution as we move into the uncertainties of the New Year.
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Posted on : 30 Dec 2024 9:18 AM