Global economic growth remains resilient despite geopolitical instability in the Middle East and persistent inflationary pressures. The surge in AI-related investments, now increasingly debt-funded, is reshaping capital allocation in the US and China, while India continues to lead as the fastest-growing major economy. India’s 7.8% GDP growth, supported by robust infrastructure development and private consumption, contrasts with the subdued earnings environment in China. Investors face a volatile landscape where rising oil prices and shifting monetary policies necessitate cautious asset allocation. A neutral stance on equity is advised, with a preference for sectors like automobiles, healthcare, and infrastructure. Meanwhile, fixed income strategies, such as the barbell approach, offer potential stability against the backdrop of fluctuating interest rates and central bank efforts to manage liquidity and currency stability.
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