top of page
Search

International markets are cheap. Is it an attractive investment opportunity?

Let's go through some mind-blowing facts before we analyze where to invest in the current scenario -


1. Germany has entered a recession, USA and countries across Europe are very close to one.

ree


2. Many small banks in US have high exposure to Commercial Real Estate, many of which are remaining vacant.
ree

  • No rent is being paid on 1/5th of US Office space

  • Small banks in US hold 70% of commercial real estate loan

And hence, there is a looming risk of US banks falling in great trouble.


3. Amidst all this, this is happening in India -

  • Real estate new unit sale at a 8 year high

  • FY23 Real GDP grew at 7.2% (vs. negative GDP growth in US, European countries)

  • Indian banks are in a very good state - with very low bad loans rate, and good growth


4. Indian Stock Markets Valuation
ree


Conclusion:

International Markets -

Valuation: Cheap/ Reasonable

Fundamentals: At the brisk of a (mild) recession

What Should you do: Instead of catching a falling knife, it is better for things to improve fundamentally and then begin investing there.


Indian Markets -

Valuation: Reasonable

Fundamentals: Strong and growing at a very healthy pace



We recommend investing in Indian markets [via SIP and (or) lumpsum] rather than International markets in the current scenario. If you're still keen, you can allocate 10-15% of your corpus to international markets, gradually (not at once), to benefit from the next 6 months expected volatility.



If we can help you invest, reach us on -

Whatsapp: +91-91110-06340




Data Source: Kotak MF, Bloomberg, Motilal Oswal, Eurostat




 
 
 

Comments

bottom of page