World
markets are going through yet another rough patch, with the Dow down
for eight straight days. The S&P 500 is in the red for 2011. This is
Wall Street’s worst losing streak since October 2008.
The
initial euphoria over the US debt deal has given way to apprehensions
about the health of the global economy. The eurozone credit crisis also
keeps rearing its ugly head intermittently.
Risk
aversion is on the rise, with the Swiss franc hitting record high
versus the euro. Gold and government bonds too are seeing
‘flight-to-safety’ buying.
The
opening is likely to be pretty weak amid a world-wide carnage. The rest
of the day’s proceedings will hinge on how overseas markets perform. A
recovery is not ruled out after the recent selloff.
Equities
and other risky assets are not on the buying list for the time being
unless you are willing to patiently wait it out. Stay lighter till the
near-term uncertainties ebb. Given the global economic backdrop, India’s
8% GDP growth may not be that bad. Medium-to long-term investors could
look at quality stocks at lower levels.
