The global economy is currently facing uncertain times, amid bank collapses and job cuts at major US-headquartered corporations. India’s chief economic advisor, V Anantha Nageswaran, recently emphasised the need for corporations, households and investors to maintain a margin of safety in these volatile times.
While India’s domestic economy is in reasonably good shape, its financial market can’t remain immune to global volatility. Amid the prevailing risk-off sentiment, global capital is likely to move away from equities and into safe-haven assets such as treasuries and gold. Investors need to be cautious with their personal finances and investments in such times.
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