The World Bank in its latest Global Economic Prospects report said the world could enter a long period of weak growth and high inflation. This could increase the risk of stagflation, with harmful consequences for middle- and low-income economies alike.
On the domestic front too, high commodity prices and unexpected RBI rate hikes have added to the stress for Indian investors. Will these global and domestic factors affect your investment? Should you be worried about rising inflation and changes in interest rates? Economytimes.com and Quantum Mutual Fund conducted a
virtual panel discussion
Featuring experts who deliberate on macro factors like interest rates, inflation and the global crisis, and get answers to all your investment concerns.
The eminent panel also discussed strategies to make inflation-proof investing and how investors can be better prepared to deal with these uncertainties. panel title
,Outlook on Global and Domestic Factors Affecting Consumer Sentiments
, Chirag Mehta, CIO, Quantum Mutual Fund, Rohit Berry, CIO, True Beacon and Vishal Dhawan, Founder, PlanAhead Wealth Management were as speakers.
According to the United Nations report, with a sharp rise in food and energy prices, global inflation is projected to rise to 6.7 per cent during 2010-2020, more than double the average of 2.9 per cent.
On how India controlled inflation, Mehta was of the view that the government had taken good measures such as cutting excise duty on food products and increasing subsidies on fuel, fertilizers and cooking gas.
“There were supply chain bottlenecks that continued due to COVID and the Russo-Ukraine war. The handouts given by the government led to a very strong demand recovery. Higher commodity and energy prices fade into the prices of goods and services. So overall, we are seeing a good mix that is driving this inflation trajectory and is likely to remain higher. ,
Berry also reiterated that inflation will remain in place for some time, as oil prices are not expected to come down anytime soon, given the Russia-Ukraine situation.
In terms of risk, if one has the impression that their job is at risk, they should look at their investment strategy very carefully and decide how to adjust it in the light of changes in income, says Dhawan. suggestion.
Experts also shared their views on whether gold can be a hedge against the crisis and investment trend among Indian investors. for more information
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