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Below is Perspective on the market by Mr. Mohit Ralhan, Managing Partner & Chief Investment Officer of TIW PE.

“The market has been facing downward pressure after touching its all-time high in October. While the economy has been recovering on expected lines, the global cues indicating unwinding of balance sheet expansion by central banks around the world have been a major factor. In this context, the US Fed’s hawkish stance has not been a surprise, but the negative market reaction today is primarily due to the indication of balance sheet reduction in the Fed minutes released yesterday. Almost all members showed concern on rising inflation and possibility of accelerating rate hikes followed by a reduction in the balance sheet. Although the timing remains uncertain, market participants are now expecting this to happen sooner than later. In addition, the rising cases of COVID-19 around the globe has also increased the risk levels. Overall, we remain cautious in the markets right now.”

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