Are we amidst an Economic cycle Turnaround?

We are in a time when the world economy is witnessing a paradigm shift by global headwinds. There are few significant factors leading the spill over, hitherto were silent. US fed rate hike, rising oil prices, strengthen dollar and overall uncertainty around the geopolitical events, globe has shook the

emerging markets to financial devastation. International investors are shifting funds from emerging to the developed markets, which signals a flight to safety and subdued expectation for return. The global debt levels have reached its peak. Debt driven growth might collapse when the earning potential saturates or perhaps sanction awaited. But there is a surprising side to the recent happenings, although we say that businesses are heavily dependent on the overall economic growth in the country, but on the contrary over the past 5 years, countries with compromised growth have shown tremendous performance in the start up space. Start-up investments entail risky capital.

The perceptions of default have risen above levels that signal crisis in various countries. The investors are confused about the asset class, equity return don’t suffice for the risk taken and the debt markets are under turmoil caused by interest rate hike fears. Nevertheless, we have seen a manifold increase in the retail level investment. Investor participation in the stock markets is at an all-time high and chasing new highs every year. Increase in investments indicate worthwhile channelization of funds from the surplus units in the economy.