Reasons Not To Worry About Another Stock Market Crash
The RBI reports have confirmed that the stock market is in a bubble. And, not once but twice Mr. Shaktikanta Das, the governor of RBI has told the press. However, the market has discounted the update and made new highs. As far as economy and inflation are concerned, the market is reasonably at a higher valuation. Having said that, one should always remember that the stock market discounts the past data and always focus on the future. However, the rally in the stock indexes is majorly due to the money printing that has happened to survive the economic slowdown Covid-19 had created. This has also led to an increase in the inflation rate. However, as per the Federal Reserve(FED) in the U.S and other Government bodies, inflation is transitory. And, is due to a shortage in supply. Therefore, it is expected that it will settle down once the economy opens up. Moreover, due to the economic disruption, the Government has decreased interest rates on Government bonds. Which in t...