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2018- A year of disappointment!

by | Jan 4, 2019 | Education

As we begin the last week of calendar year 2018, let us have a look at how the various asset classes performed during these last 12 months:

Indian equity markets: If 2017 was the year of the bulls, 2018 clearly belonged to the bears! Even though January continued 2017’s bull run further, the annual Budget & especially the introduction of LTCG ensured a negative 1st quarter for the markets. This was followed by a very decent recovery with hopes of another decent year on Dalal Street but the ILFS saga in September played party pooper and reminded us that all good things do come to an end. Among the top Indian indices, Small & midcap endured a torrid year, to say the least leaving aggressive investors sweating!

Global equity markets: Global equities too had a tumultuous year with US, European & Chinese markets dragging. The US market, in the last 3 weeks seems to have fallen off a cliff & leaves investors wondering whether a repeat of 2008 is on the cards in the coming year. Asian markets too suffered with 2018 will mostly be remembered for the US-China trade war clash which is & will continue to be a lose-lose situation for all.

Commodities: A bigger disappointment this year was the commodities market. Gold continues to stay below $1300 & silver below $15 leaving everyone wondering when will the bullion bull market resume again. Even though crude seemed to be having a great year with Brent crude touching highs of $86.74 in October, a last 2-month collapse could probably see Brent oil ending 2018 at its 16-month lows near $ 50. Amongst the base metal pack, copper too endured a subdued 2018 with Comex Copper closing at $ 2.667 after starting off 2018 at $3.25! A long-term China bear market isn’t helping the base metals pack at all.

Cryptocurrency: 2018 will always be remembered as the ‘Year of Disaster’ for the hardcore cryptocurrency traders. If 2017 ended with promise, 2018 began with a correction which still hasn’t ended and has turned into a mega crash with Bitcoin ending the year at 14-month lows. Not a year for the faint hearted!

Currency: To cap off the mega disappointments was the EUR/USD which also has ended 2018 on a very sad note close to 1.1423 due to global selling pressure in global equities & a strengthening dollar. Meanwhile, the USD/INR after starting off the year at 63.25 hit 74.49 in October 2018 signaling tough times for the RBI & the general public as well. A sharp recovery in November 2018 still ensures a year-end closing very close to 70 which will make the IT & pharma sector smile again.

With almost all the asset classes underperforming in 2018, what could 2019 have in store for investors globally? Will this downturn continue or a mega recovery is on the cards?

Best of luck with your Market journey in 2019.! If you have any other questions related to equity, commodity or if you are interested in learning more about Market, please visit https://www.tips2trade.co.in/