The Hidden Cost of Slowing GDP Growth A GDP slowdown affects more than government statistics—it impacts opportunities for businesses, individuals, and investors alike. The real cost is staggering. For context, a 3% GDP deficit equates to $100 billion, enough to fund flagship programs five times over. But this doesn’t mean you can’t build wealth. It underscores the importance of adapting your investment strategy to the changing landscape. During slower growth, diversified portfolios tend to outperform, spreading risk across various sectors and asset classes. For instance, while domestic consumption might slow, international markets or emerging technologies can thrive. Good advisors play a pivotal role in navigating these complexities. They identify growth areas, help mitigate risks, and ensure your portfolio adapts to shifting trends. Platforms like DhanXpert offer access to vetted experts who specialize in crafting resilient investment strategies. In uncertain times, informed investing isn’t just an option—it’s a necessity. By diversifying and seeking expert advice, you can turn challenges into opportunities for financial growth. #IndiaGDP #GDPImpact #GDPInsights #GDPAnalysis #DhanXpert
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I recommend reading the recently released OECD Economic Outlook 📊 for valuable insights into the major trends shaping the global economy 🌍 and key risks ahead. According to the report, global growth is expected to stabilise at a moderate pace, with inflation projected to return to target levels in most countries by the end of 2025. Nevertheless, several risks remain, including persisting geopolitical and trade tensions 🌐, the possibility of a growth slowdown as labour market pressures fade 🛠️, and potential disruptions in financial markets 📉, if the projected smooth disinflation path does not materialise. For a comprehensive analysis of trends and policy recommendations, I encourage you to explore the full report 📑!
📢𝗧𝗵𝗲 𝗢𝗘𝗖𝗗 𝗜𝗻𝘁𝗲𝗿𝗶𝗺 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗢𝘂𝘁𝗹𝗼𝗼𝗸 𝗶𝘀 𝗻𝗼𝘄 𝗿𝗲𝗹𝗲𝗮𝘀𝗲𝗱! The global economy remained resilient in the first half of 2024, and inflation has continued to moderate. These trends are projected to continue into 2025, with global growth stabilising at a moderate pace and inflation returning to target in most countries by the end of 2025. 🔶 Key near term risks include: 🔹 persisting geopolitical and trade tensions, 🔹 the possibility of a growth slowdown as labour market pressures fade, and 🔹 potential disruptions in financial markets if disinflation does not proceed smoothly, as expected The Interim report says that policy interest rates should be lowered as inflation declines, even though the timing and pace of rate reductions should be judged carefully to ensure that inflation returns durably to target. Stronger efforts to contain government spending, enhance revenues and improved budgetary frameworks are needed to ensure fiscal sustainability. Reinvigorating product market reforms to lower barriers to services and strengthen competition is an essential step to turn the corner on growth and help alleviate fiscal pressures. Find out all the details: ➡https://oe.cd/IEOSep24 #Economicoutlook #OECD
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GDP reflects total national economic output, while equity markets’ capitalization reflect only corporate activity. Furthermore, free float-adjusted capitalization accounts for investable shares. By this measure the US makes up about 60% of global capitalization, higher than its share of global GDP. Learn more: http://ms.spr.ly/6040Yhjus #USInsights #marketsectors
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Our weekly newsletter, Investment Viewpoint, simplifies the complex with clear and concise market insights. Here's what we cover in our latest edition: ◼ US Healthcare is showing signs of life after lagging in 2023 – what is our view of the sector? Senior Equity Research Analyst Brian Flavin FCA, Cert. in ESG Investing (CFA Institute) presents our view. ◼ What happened in fixed income markets last week – and what does it mean for our positioning? Elizabeth Geoghegan, CFA, Goodbody Head of Fixed Income Strategy, explains. ◼ We also preview US CPI and PPI data which will be released this week. Read our views here: https://lnkd.in/enKmMREf
Investment Viewpoint: US healthcare sector in focus
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Associate Director - Strategy & transactions - M&A @ Deloitte | Energy transition | My views are my own
Interest rates saw a global surge in 2023, affecting advanced economies that previously enjoyed a decade of low inflation and interest rates post the 2008 financial crisis. The pandemic initially suppressed interest rates, but mounting inflationary pressures in 2022 reversed this trend. Global conflicts, including Russia's invasion of Ukraine, further heightened political risks, elevating the cost of capital. Long-term government bond yields, a key indicator of borrowing costs, significantly climbed in many countries. For example, US 10-year Treasury yields increased by ~3% from 2020 to 2023, with even steeper rises in short-term rates. European government bonds followed a similar trajectory. The substantial increase in US interest rates had a notable global impact on investments, particularly in emerging and developing economies. This led to higher costs of local currency financing in countries like Brazil, Mexico, India, and South Africa. The rise in interest rates also impacted the cost of equity, driving expected returns higher. For instance, utility-scale solar photovoltaic projects in the US saw expected returns soar to 8% to 9% in 2023. Similarly, return expectations in many emerging markets surpassed the mid-teens due to perceived risks. The overall higher cost of capital poses a challenge for various sectors, especially capital-intensive industries like clean energy that heavily rely on debt financing. The combined effects of rising interest rates and a strong US dollar are expected to maintain elevated expected internal rates of return (EIRRs). Image credit: IEA
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High-Impact News for May 16: Keep an eye on crucial economic releases today, including GDP (QoQ) (Q1), Initial Jobless Claims, and the Philadelphia Fed Manufacturing Index (May). These reports could shape market trends! Risk Warning: Trading involves risk. This is not investment advice. #GFSMarkets #HighImpactNews #EconomicUpdates #MarketMovers #TradingInsights
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Co-Founder; Co-Principal; Co-CEO; Co- Associate from/of ⛲ Sesquivalence. My vision of a quasi-corporation that manages Elysium-like system (yes, the Hollywood Elysium...) day in and day out with it's own, somewhere...
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JPMorgan is on track to include India in its emerging market debt index starting in June, says its global head of index research. Garfield Reynolds reports. https://lnkd.in/gYhjGTT5
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Latin America Market Report 2024: Navigating Risks, Unlocking Growth 🌎 Our latest Swiss Re Institute report dives deep into Latin America's economic and insurance landscape. With real GDP projected to grow by 2.2% in 2025, the region remains resilient amid global uncertainty. Inflationary pressures and trade dynamics present challenges, yet opportunities like nearshoring and regulatory innovation offer a path forward. 📊 Key insights: - Economic growth: Deceleration expected but outperforming advanced economies. - Insurance outlook: Premiums set to grow 3.8% in real terms, outpacing GDP. - Opportunities: Protection gaps and open insurance reforms signal potential for expansion. With the right strategies, the region's long-term potential remains strong despite near-term headwinds. 💡 Read the full report for insights into navigating risks and capturing growth in a complex market: https://lnkd.in/eNcbecSM #Insurance #LatinAmerica #EconomicOutlook #SwissReInstitute https://lnkd.in/eNcbecSM Swiss Re / Fernando Casanova Aizpún / Caroline Cabral
Latin America market report 2024 | Swiss Re
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Do you also think that the Index is growing but not your portfolio?? Have you ever wondered why certain stocks or industries outperform others at different times? It's often due to a phenomenon called "Sector rotation" Sector rotation refers to the strategy of shifting investments between different industry sectors based on economic conditions, market trends, and other factors. For instance, during economic downturns, defensive sectors like healthcare and consumer staples might thrive, while cyclical sectors like technology and industrials could struggle. Key factors influencing sector rotation include: Economic cycles: A booming economy favors cyclical sectors; recession favors defensive sectors. Interest rates: Rising rates can impact sectors sensitive to borrowing costs. Government policies: Regulations or incentives can significantly affect industry performance. Technological advancements: Disruptive innovations can reshape entire sectors. Understanding sector rotation can help you make informed investment decisions and potentially improve your portfolio's returns. Have you ever experienced the impact of sector rotation on your investments? Share your thoughts below! Follow Big Shorts for more #sectorrotation #investing #stockmarket #financialadvice #markettrends
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The uncertainty of economic developments has been one of the hot topics most explored by companies globally. Both inflation and monetary policy have influenced companies' results, demand for goods and prices for the end consumer. A study by Allianz Trade indicates that the ECB cannot afford to postpone further rate cuts, which means that with lower interest rates ahead the corporate debt-repayment wall (40-50% of debt due by 2026) should be manageable, without any major hiccups. However, it is also Allianz Trade's prediction that highly leveraged sectors could be increasingly in difficulty, keeping company insolvencies at high levels. It is estimated that four out of five countries will see an increase in company insolvencies by 2024 (+12% per year on average), with the biggest increases likely in the USA (+28% per year), Spain (+28%) and the Netherlands (+31%).
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