Emerging market stocks have been overlooked by investors for most of 2022 & this year, but it’s time to take notice as this undervalued asset class could make a come back in the second half of 2023.
Emerging markets (EM) have experienced a more turbulent ride than the already volatile U.S. stock and bond markets over the past 2 years. Currently, EM stocks are enduring one of their longest bear markets, with the MSCI Emerging Markets Index down approximately 40% from its peak in February 2021.
Introduction:
In the tumultuous year of 1939, as Adolf Hitler’s forces stormed into Poland, the world stood on the precipice of a dark and uncertain era. Amidst the chaos, a Tennessee investor named John Templeton saw an opportunity like no other. Renowned as both a respected investor and a distinguished journalist, Templeton’s remarkable story during this period would strongly influence the way we perceive the stock market.
As investors, what we are really trying to do is to ensure that we have enough money for a goal in the future. This goal may be a comfortable retirement, children’s education or a big purchase. The risk to us, simply put, is that we will fail to achieve that goal. This may happen because of many different reasons. A practical approach, which we can all adopt, is to know what these reasons could be and what steps we can take to protect ourselves.
The grapevines are abuzz with the freebie topic post the election results in Karnataka. The opinion of the tax payer has become insignificant as the policy makers think it to be a waste of time to consult them on how they want to squander away the tax payer’s hard earned money.
Last night a proposal to amend the finance bill 2023 was announced. The long-term tax benefit for Debt, Gold and FOFs investing in foreign MFs, if they invest less than 35 percent of their assets in Indian equities, will be stripped off. Such mutual funds will now attract short-term capital gains tax regardless of holding period. These amendments will impact mutual fund investors for investments made on or after April 1, 2023. This would mean additional tax collections for the government next year onward.