{"id":28511,"date":"2024-02-08T13:13:47","date_gmt":"2024-02-08T07:43:47","guid":{"rendered":"https:\/\/kuvera.in\/blog\/?p=28511"},"modified":"2024-02-14T16:15:03","modified_gmt":"2024-02-14T10:45:03","slug":"bandhan-mutual-fund-equity-outlook-2024","status":"publish","type":"post","link":"https:\/\/kuvera.in\/blog\/bandhan-mutual-fund-equity-outlook-2024\/","title":{"rendered":"Bandhan Mutual Fund Equity Outlook 2024"},"content":{"rendered":"

In <\/span>@Bandhanmutua<\/span><\/a>l’s Equity Outlook 2024, titled “<\/span>A Tale of Three Probables<\/b>,” we explore how historical cycles might offer insights into our current high inflation and interest rate scenario.\u00a0<\/span><\/p>\n

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A<\/span> quick look at the <\/span>key takeaways from the report. But before that,\u00a0<\/span><\/p>\n

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Just in case you missed it, check out @Kuvera_In\u2019s insights from investors –\u00a0 <\/span>India Rising | 2023 Review and 2024 Outlook<\/b>.<\/span><\/p>\n

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Download: <\/span>https:\/\/kuvera.in\/IndiaRising_2024Outlook<\/span><\/a><\/p>\n

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Cycle I – The 1994-95 Soft Landing:<\/b> The Fed took action, inflation was tamed, and the economy sailed smoothly. \u26f5 GDP growth stayed healthy, and the dollar weakened.\u00a0<\/span><\/p>\n

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Cycle II – The 1973-79 Inflation Strikes Back: <\/b>High GDP growth led to soaring inflation. The Fed fought back with high-interest rates, and the dollar was weak.\u00a0<\/span><\/p>\n

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Cycle III – The 1945-50 Debt Deleveraging:<\/b> Post-WWII, high inflation met government debt. The Fed kept rates low to stimulate growth.\u00a0<\/span><\/p>\n

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\"FD<\/a><\/p>\n

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@bandhanmutual <\/span><\/a>report says that 2024 might echo the 1994-95 cycle:\u00a0<\/span><\/p>\n

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??US inflation fell from 9% to 3%<\/span><\/p>\n

??Fed hiked rates, but strong GDP & low unemployment persisted<\/span><\/p>\n

??If real rates stay high, US economy may slow, with falling rates<\/span><\/p>\n

??Neutral outlook with global headwinds, equity tailwinds<\/span><\/p>\n

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1970s-style inflation resurgence is unlikely, but not impossible.\u00a0<\/span><\/p>\n

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??Fed might cut rates due to high government debt-GDP, boosting equities, economy, and valuations.<\/span><\/p>\n

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??Inflation resurgence unlikely, credit risk reduced.<\/span><\/p>\n

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??Emerging markets could outperform as developed markets see falling rates.\u00a0<\/span><\/p>\n

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Option 3: Tail risk of tightening causing a credit event or recession. The odds are lower now, but still, a concern. ?<\/span><\/p>\n

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? On the global stage, emerging markets might outshine developed markets as interest rates in the latter fall.\u00a0<\/span><\/p>\n

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?? India Shines: Domestically, India’s looking bright with strong demographics, political stability, and reforms paying off.\u00a0<\/span><\/p>\n

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@bandhanmutual<\/span><\/a> report suggests, while high returns may not continue for the broader market, small and midcaps still deserve a spot in your long-term equity portfolio.?\u00a0<\/span><\/p>\n

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Follow Kuvera for more interesting insights from the world of finance, economy, and investments.\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n

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Interested in how we think about the markets?<\/strong><\/p>\n

Read more: Zen And The Art Of Investing<\/a><\/p>\n

Watch here:<\/strong> Investing through various economic and market cycles<\/p>\n

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