[ad_1]
SBI Report: State Bank of India (SBI) has said in a report that with the possibility of a global recession, central banks of various countries can reduce rates. According to the report, policy makers have to control inflation without harming the economy and financial markets. The report states that higher cost of capital and thus lower operating margin affects the growth and competitive landscape in favor of established market players as compared to new entrants.
The correlation between equities and bonds is expected to decrease
These are challenges for investors
Challenges for investors also increase when bond prices as well as equity prices fall simultaneously. Allocation to fixed income has been a challenging sector in the current year, as low yields on government bonds reduce the ability of investors to recoup losses incurred during bear markets. The report states that investors choose asset allocation in equity markets by comparing the returns received from short term as well as long term government securities.
Best performance of Indian markets in the year 2022
SBI said that Indian equity markets were volatile in 2022, but a closer look at the data shows that they outperformed relative scales both in terms of returns and volatility.
Read also
[ad_2]
Source link