Macroeconomic data continued to soften through the month, indicating a continuous slowing of the global economy. Composite PMI for Jul-22 moved into the contraction zone for the US (led by Services) and Europe
Equity markets have corrected since their highs in October 2021, and investors have witnessed periods of heightened volatility induced by the Russia-Ukraine conflict, red-hot inflation, rising interest rates and monetary tightening.
In the fight between Russia and Ukraine, global growth has succumbed. Centralbanks are also waging war against inflation, crucifying growth.
When Nifty50 makes investors jittery about the course of the market, Rajesh Cheruvu, chief investment officer at Validus Wealth, favours equities as an asset class. Validus Wealth manages assets worth $1 billion.
Green Bonds are fixed-income instruments issued for the specific purpose of funding projects that have constructive environmental and or climate benefits.
With so many political superpowers having vested interests in the ongoing Russia-Ukraine war, calls for a diplomatic solution have often been countered with the need for more military action.
There’s no respite from volatility for the equity markets, at least for the next few weeks, thanks to the sustained selling by foreign institutional investors, mounting inflationary pressure, liquidity control moves by central banks and supply chain disruptions.
The importance of asset allocation would not have come to the fore if for the experience of the past couple of years.
The world economy entered 2022 with durable tailwinds but had to soon weather the storm in the form of multiple headwinds arising from the Russia- Ukraine war, decade-high inflation, aggressive monetary tightening by global central bankers and China’s strict enforcement of the zero-Covid policy.
Environmental, social and corporate governance (ESG) investing started small in the US. long back in 1971 but steadily gained traction with the UN in 2015 adopting the 17 Sustainable Development Goals (SDGs).