Letter # 120

Equity markets, worldwide, have rallied since the last Fed rates decision on 22nd March – on the assumption that this hike cycle is ending. As FOMC announces its rate decision tomorrow, in today’s ET article, we take a look at the anatomy of rate hike cycles, how RBI has managed the shocks, and how to approach it from an equity investing standpoint.

Read here: https://tinyurl.com/3tue6n9w

Fundamentally, there are three notable effects when globally coordinated rate hikes happen. While two of them are well known, the third one may be underappreciated. Once we see them in the current context, we find that our focus must equally be on the emerging risks (highlighted in the article).

If you have missed any of our previous articles, we invite you to peruse them on our website: https://www.buoyantcap.com/news-resources/memos/

Disclaimer:

Information in this letter is not intended to be, nor should it be construed as investment, tax or legal advice, or an offer to sell, or a solicitation of any offer to make investments with Buoyant Capital. Prospective investors should rely solely on the Disclosure Document filed with SEBI. Any description involving investment examples, statistical analysis or investment strategies is provided for illustration purposes only – and will not apply in all situations and may be changed at the discretion of the principal officer. Certain information has been provided and/or based on third-party sources and although believed to be reliable, has not been independently verified; the investment managers make no express warranty as to its completeness or accuracy, nor can it accept responsibility for errors appearing herein.