Global equity markets seem to be tiring. The yields are rising in US debt markets. Exchange rates are moving swiftly and unpredictably. The dollar gained when expectations ran to the contrary on what the US government may want. Gold has remained soft for weeks on end and seems to be weakening further. Inflation could be a potential spoiler of the global party in equities. Commodity prices have been rising leading to cost spirals in several industries. The dollar indices are adding to the chaos with their swings. Overall, the markets are seeking direction and validation.
Everybody has seen decent performance and the overwhelming mood is to build on it. The need of the hour is to protect the existing performance in equity portfolios, focus on asset allocation to capture equity gains permanently, and to create liquidity for any special situations that may arise. Investors must bring in some fresh thinking, adopt better risk mitigation measures, seek sound advice, and stay focused on wealth protection.
The bull run must be captured permanently in your wealth and not become a fleeting phase that came and went.
