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.
PMS firms woo clients as a hike in investment threshold looms
Portfolio Management Service (PMS) firms are going all out to pull in clients before the new year when the minimum investment threshold is expected to double. Currently, an investor must put up at least Rs 25 lakh to be eligible for PMS schemes, which mostly cater to the rich, to accept at least Rs 25 lakh from an investor. This is expected to go up to Rs 50 lakh from January 1.
PMS firms fear the new minimum investment requirements could make it tougher for them to attract investors in challenging market conditions. “It is important to acquire new clients as many investors start small and increase their commitments once they are comfortable with the portfolio manager,” says Amit Doshi, investment director, CARE PMS.
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.
Lured by lower prices? Will you buy shares because it is cheaper than its peers?
A question that fundamentalists come across quite often. Why not buy the cheaper one of the lot? We fall prey to the lure of lower prices with a bias towards a company whose price quoting on the exchange than its peer group.
In all corners of the globe, warning signs are flashing about the state of the economy. The IMF has recently downgraded its forecast for global economic growth for the 4th time in 9 months to 3.2%. 70% of the global economy is expected to experience slowdown this year, the IMF forecasts. The IMF isn’t projecting a recession but its an uncertain and bumpy path ahead. To add fuel to the fire, the US-China trade war is not giving any certainty and keeps on bringing volatility around the globe.