Global markets are likely to witness volatility over the next three months, but there is hope for a boost in markets due to a decrease in borrowing costs, as per Vinay Jaising, MD and Co-Head at JM Financials Ltd.
Interest rates, currently at 5.25%, may see a decline of 1-2.25% in the coming months, enhancing the borrowing capacity of investors. Jaising predicts significant volatility in global markets attributed to increasing defaults in mortgages and credit card payments, along with a slowdown in capex in the US.
Despite these challenges, a drop in borrowing costs could help stabilize markets in the next six months, with Jaising highlighting that as the cost of capital decreases, markets are likely to become more stable. He anticipates a turbulent period in global markets over the next three months, urging investors to be more cautious than aggressive.
The upcoming months may see a more conservative approach from investors, with Jaising emphasizing that volatility might lead to a downward trend in global markets. Although the Nasdaq has shown a growth of 10-12% in recent months, a correction in its valuations is on the horizon due to its strong performance over the last few years.
Retail and domestic investments, particularly through mutual funds, are expected to support the markets during their decline. Jaising notes that domestic investors are likely to increase their purchasing activity during corrective phases in the short term.
#GlobalMarkets #VolatilityAhead #InvestmentStrategies #JMFinancials #VinayJaising #MarketPredictions #BorrowingCosts #GovernmentPolicies #InvestorSentiment #MarketTrends #MutualFundsInvestments