Will the markets throw a surprise party this week?

Today’s Daily Byte

There was a small bounce in the market today. There was an expectation of a downside this morning, and indeed the market opened lower, particularly in the small and mid-cap sectors. However, the Nifty recovered first, followed by Nifty Junior, mid-caps, and then small caps, all of which ended up in the green.

So, will the markets throw a surprise party this week? If you’ve been waiting for lower levels, what will you do if the market doesn’t reach your target? We will discuss all this in the video below !

Reading Time : 4 Minutes

Deficits and inflation are here to stay

The U.S. budget deficit has been on a concerning rise over the past several years. After the 2008 financial crisis, the government increased its spending to stabilize the economy, leading to a significant deficit. Although there was a brief recovery, the deficit started to rise again from 2014. The COVID-19 pandemic in 2020 caused the deficit to balloon to nearly 3 trillion dollars due to the massive stimulus packages.

Today, the deficit sits at around 1.5 to 1.6 trillion dollars annually, and projections indicate it may reach 2 trillion by the end of the decade.. . . . .

Reading Time : 3 Minutes

Realistic Expectations

For over a century, the 60/40 portfolio—60% equity and 40% bonds—has been a popular strategy in the U.S. financial markets. This strategy has seen its ups and downs. If you look at the data from the past 12 decades and adjust it for inflation, you’ll notice that there were several periods where this strategy did not deliver any real gains.

For instance, between the early 1900s and 1920, from 1930 to 1943, and again from 2000 to 2010, the 60/40 portfolio remained stagnant in real terms. . . . .

Reading Time : 3 Minutes