It is difficult to look ahead when all the news headlines are about Omicron and rising covid cases. However, we need to look beyond the near term uncertainties and look at the bigger picture.
An analysis of 300+ articles, white-papers, podcasts and interviews have created this big picture look at 2022.
What are the key events that could impact the Indian markets?
India turns 75: The 1991 reforms addressed the supply side while the country needs to focus on the demand side reforms.
Elections: State elections take place every year; the markets will however, focus on the largest state - UP's elections.
Unicorns & IPOs: In 2021, 44 startups achieved unicorn status; this number is higher than the total Unicorns over the past decade. Also US$ 16Bn worth IPOs hit the markets in 2021; IPO enthusiasm is expected to remain high in 2022 as well.
Omicron or is it Deltacron - I retain hope based on reading various expert opinion that this third wave will not wreak much havoc on the economy.
US Tapering : The US has already begun tapering with interest rate hikes expected this year. The US QE tapering in 2013 caused a 15% correction in 2013. Such a sell off is unlikely given both forex reserves and current account are in much better shape.
What should you do?
Similar to every year, there will be quite a few events in 2022. And any predictions about the market is going to be wrong; so let's not even get there.
Keep reviewing your asset allocation and if and when the markets correct, ensure you are able to take advantage of it and add to Equities.
Lets plan our finances with these simple New Year Resolutions:
Source: Livemint, ET Money