Global economic growth is forecast to edge up to 2.5% in 2020 as investment and trade gradually recover from last year’s significant weakness but downward risks persist with advanced economies growth slipping to 1.4% whereas emerging and developing economies expected to grow at 4.1%.
Corona Virus: There will be an impact on global trades considering recent incidences of effected cases of virus in countries other than China and hence broadly global markets will remain volatile including India.
The world economy is afflicted by weak sentiment, trade-related disruptions, and rising downside risks to growth. Central banks leaning towards lower rates reflects growing pessimism on the growth front. The calm that characterised global financial markets in the beginning of 2019 has been dispelled since May, with a combination of trade and geo-political tensions and the worsening global growth outlook imparting heightened volatility.
Market prices falling? – should you exit your long-term stock specific portfolio too?
Sharp falls in market prices generally make headlines across all media. And no sooner when the index falls, predictions of more doom start pouring in from all corners. Clearly, the mood is that of panic and fear. And we won’t blame the investors if they are unwilling to touch stocks even with a six-feet pole. Simply because our brains are hardwired to make us run from danger at the first sight of it. And when it comes to investing, nothing can be more dangerous than seeing stocks suffer violent declines in a matter of hours.