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Showing posts with the label resilience

Staying Ensconced in a turbulent economy

  The economy is presently encountering a bit of a turbulence . Since fuel prices have skyrocketed due to the Ukrainian crisis , a shortage of fuel is leading to inflation . My reading is that excess money supply in the economy is not leading to this , as there is a school of thought which believes that drop in interest rates during COVID led to this , which was primarily meant to kick start the economy .   Since mass sentiments have changed rapidly to hike in interest rates by 40 bps , many folks are moving money out of the stock market and into fixed interest instruments . This is leading to drop in the prices of many bluechip companies , which is helping these to be available now at very affordable rates. This may be a good opportunity to invest in these great companies available now at very attractive valuations.   You can invest in large cap funds like Franklin or SBI Blue Chip or their equivalent or buy straight into equities like Hindustan Unilever , Nestle , HDFC Bank , ICICI B