From equity scarcity, ‘there is no alternative’, to money sloshing around despite central bank normalisation, there could be varied reasons for markets to stay stable. However, maybe the argument of return of capital being more important than return on capital might find more mention in 2022, considering what is making headlines is not equity performance, but inflation which in the U.S. is at 39-year high.
This week, we talk about the bull versus bear argument, IT earnings and commentary, the conundrum for China, and, of course, Bitcoin.
One thing all of us have realised about the new world order is that it has been nearly impossible to guess the future. Let’s face it, the era of predictable unpredictability is not going away. Within that framework, let’s try and draw out a possible economic and business outlook for the year ahead, for India and the world, writes Niraj Shah.
underserved by traditional financial institutions and have very little trust in banks, crypto is a very attractive asset class. not to mention it gives people the opportunity for higher than market returns and for those of us who are looking at massive racial wealth gap, the s&p 500 returns about 13% a year, crypto over the last five years has returned 14000%. so this looks like a real opportunity to close the racial wealth gap in a smaller amount of time, and i think that s really the attraction. is it the smartest thing to be? it should absolutely be a part of your portfolio, right? but the problem is that, like anything, you shouldn t put all of your eggs in one basket, right? this is investing 101. we need diversification of your portfolio. you should be invested in equities like stocks. you should be invested in real estate. you should be invested in maybe even your business. there s other forms of alternative assets, and so what