The underperformance of India in 2023… not a surprise
Today, India’s key challenges are selling from FIIs, a high-interest rate, elevated inflation, and slowing earnings growth. We feel that most of the issues are getting factored into the prices. If the cautiousness continues in the short-term, we can presume that the worst is over, limiting further price corrections though valuation moderate.
Gold remains vulnerable as 4 bearish factors are at play
Thirdly, much stronger-than-expected US data like Q4 GDP, advance retail sales (February), ISM non-manufacturing (January), and US durable goods orders (December) have faded away the risk of a recession at least in the near term. Thus, expectations of a Fed pivot are being pared down.
Reversion to mean: A powerful concept for ordinary investors
Take the above concept to understand some investor’s bias, when a stock gets included in popular indices like Nifty50, based on past performance. The above average performance may not sustain after the inclusion, as it is just reverting to its long-term mean.
Planning to invest in mutual funds? 5 risks you need to be aware of
While these numbers should not put you off investing in mutual funds, it is better to understand the underlying risks of investing in mutual funds to formulate a strategy and earn decent returns.