High inflation, falling rupee, fear of recession: Should investors worry?

Macro events such as record rise inflation in US, strengthening of dollar, Ukraine-Russia war have influenced the Indian economy hurting the sentiments of the equity investors. The fear of recent downgrades and recession have made investors revisit their equity investment strategy. However, Rajesh Saluja, CEO & MD, ASK Wealth Advisors clears the air as he believes this decade belongs to India. As per Saluja, India's economy would probably be the fastest growing in 2022. From a long term standpoint, as per Saluja, India seems to offer better prospects now than ever. "While Indian stock markets are commanding premiums over the other emerging markets, given our stable governance regime, significant forex reserve, a large forex earning segment especially in the IT sector, lower inflation compared to many other economies, better return on equity, higher earnings growth and so on.. All are getting reflected even in the fall in our 10-year G-sec. Broad point is we are in a much better place," says Rajesh Saluja.

While some experts are suggesting investors to increase the level of cash in their portfolio given the current equity markets and unpredictable macro and micro factors, Saluja believes varying cash levels as a portfolio strategy to protect downside risk is not a favourable strategy. Markets do not allow time to think. It  will surprise you when least expected. Saluja shares a better plan of action instead.

As per Rajesh Saluja, most current negative factors such as the fallen rupee are short term in nature. He asks investors to look at equities from the standpoint of long term compounding. Saluja also shares his favourable equity sectors and he guides on the fundamentals of investing successfully in equities. Watch the full video for details.