We look at returns of various asset classes such as equity, debt, gold, crude oil and the Indian rupee in our latest monthly market summary.
We use data for these charts from Investing.com
US Equities and Indian large cap equities rallied strongly in August, continuing a multi-year trend of high returns. However, the broader emerging markets and also other developed market equities corrected heavily in the last month and have not done well on longer time frames either.
The 10Y G-Sec resumed its move toward 8 per cent, closing August near 7.95. Rising oil prices, a depreciating rupee and fiscal concerns are putting a cloud on the Indian macro story.
Gold continues to trade in the 1200-1400 dollars per ounce range. A strong move of gold outside of this range would give a better indication of its long term trend.
Oil bounced back strongly in August, moving from 71 to 78 dollars per barrel. Because of our large dependance on oil imports, it is important to keep an eye on this figure as it can have a destabilising effect on our macros.
The Rupee depreciated sharply against most major currencies in August, reflecting the broader collapse in emerging market currencies lead by the Turkish Lira. The rupee has crossed 71 against the dollar, 91 against the pound and 82 against the euro.
Rishad is the founder of Kairos Capital. He started his career with Standard Chartered Wealth Management and has extensive experience in markets, particularly in terms of mutual funds and stocks.