Lessons from the past
The Tantallon India Fund closed 5.44% lower in September as markets struggle to internalise the US Federal Reserve Board’s commentary on reining-in inflationary expectations and the unprecedented strength in the US dollar even as corporate earnings continue to surprise on the upside and the government’s implementation of structural reforms builds momentum on the ground.
We expect markets to remain extremely volatile. The current investment environment is challenging, perhaps the most challenging environment since the 1997/1998 Asian Financial Crisis and Russian Currency Crisis. Causes include the war in Ukraine and deteriorating geopolitics on many fronts, central banks belatedly tightening in the face of persistent inflation, long Covid in China, political ineptitude across multiple geographies, a global food and energy crisis compounding Opec+’s intransigence and mounting recession risk.
