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Most people are afraid of the volatility associated with equity investing and the risk of negative returns. We are more accustomed to traditional investments like term deposits, where we are assured positive return. However, as most of you would be aware, that returns hardly beats inflation. While equity can deliver negative returns in the short term, long-term returns have been historically in the investor’s favour!

Analysts expect the second half of the year to improve due to the easing consumer inflation index and softening commodity prices that could ease the pressure on margins. Easing inflation will encourage retail investors to stay optimistic about economic recovery.FIIs have pumped in almost Rs 16,860 crores (approximately US$ 2.1 billion) between 1st August 2022 and 18th August 2022.

“Markets may witness consolidation after five weeks of the successive rise and it would be healthy. We hardly saw any major decline in the index in the recent phases of consolidation, however a lot would depend on the performance of US indices where we still see room for further upside,” said Ajit Mishra, VP - Research, Religare Broking.

The US dollar index rose sharply last week and tested a 1-month high. The US dollar index edged up amid ongoing debate about the Fed’s monetary policy stance and amid increased safe-haven buying on the back of geopolitical tensions and growth worries.The trend in the US dollar has been one of the key price determining factors for gold and this relationship remains intact as market players try to assess Fed’s monetary policy stance.

Chinese equities are seen making up lost ground as the extreme pessimism toward its economy recedes and authorities take further steps to revive stuttering growth. At the same time, the gathering enthusiasm over other developing-nation equities could peter out amid a global slowdown, causing their correlation with China to reassert itself.

“Unlike the Nifty move which was pretty sharp, the valuation uptick was not that sharp, partly because Q1 results were factored in and therefore, when we moved our estimates forward, valuations looked a tad bit better. After this stupendous rally, one should see some bit of moderation in the Nifty levels and I would not be surprised if that moderation continues well into this month as well.”

Whether it remains a winner becoming even more deeply inverted depends not just on how many more rate hikes there will be, but also on the economic consequences and the Fed’s tolerance for pain. Powell will open the Wyoming confab with remarks on Friday at 10 a.m. New York time. And speculation is mounting that he’ll strike a hawkish tone that leans against market expectations for rate cuts in 2023 in response to an economic slowdown.

The proximate cause: SPY charges a comparatively beefy 10 basis points versus just 3 for its younger clone known as the $15 billion SPDR Portfolio S&P 500 exchange-traded fund (SPLG).A similar dynamic has also hit big-name ETFs investing in everything from Big Tech stocks and high-yield credit

Flashbots is already the dominant way for miners to collect fees from traders by letting their transactions front-run and otherwise step around others. Other participants are considering becoming builders because of concern about Flashbots or similar entities having too much control.

“I still firmly believe that a lot of pent up demand exists in the economy and amongst consumers and businesses and as a result, the second half probably should be very strong or resilient in terms of growth. Now when you tie this into the market and given the fact that markets tend to discount 12 months forward earnings, Indian market at Nifty level will do something close to Rs 1,000 of EPS in FY24. ”