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Financial markets over-optimistic?

Finance has made peace with the five big threats

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Illustration: Ajay Mohanty

5 min read Last Updated : Feb 04 2024 | 10:53 PM IST

Uncertainty rose dramatically in February 2022. In February 2023, my column here in Business Standard was titled “Certainly, uncertainty has declined” (https://mybs.in/2cCJLMS). Many things have gone rather well in the year that followed, and perhaps the financial markets are over-optimistic.

The grand question of the last year was about restarting the economy in developed markets (DMs) after Covid. Large-scale monetary and fiscal stimuli had given a burst of inflation. Unlike the inflation crisis of the 1970s, there was predictability on policy strategy, thanks to inflation targeting. But there was a lot of gloom about the harm to gross domestic

Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

Topics : BS Opinion Financial markets stock market trading

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