Do it yourself

The present narrative in the global market is definitely not comforting. In the developed western economies, in particular, even the investors who took the classical moderate approach to asset allocation, e.g.,“100-age” (percent allocation to risk asset 100-investors’ age and the balance to fixed income) or “60:40” (60% risk assets and 40% fixed income for working people and vice versa for retirees) have witnessed material losses as both risk assets (equities, crypto, etc.) and fixed income (Bonds, REITS, etc.) have witnessed sharp correction. Reportedly, 60:40 Portfolio of US stocks and Bonds is down 21.6% in YTD2022, the worst performance since 1931. In India also, most balanced funds (funds that invest in a mix of equity and bonds) have yielded marginally positive or negative return YTD2022. From whatever is happening around the world; and whatever is being prophesied about the future, at least the following five things are reasonably clear to me– (i)    The econo...