Global market volatility: Anil Singhvi asks investors to be cautious, says US market trends will be more crucial going forward

Zee Business Managing Editor Anil Singhvi on Friday advised traders and investors to be cautious as the global markets, especially the US markets, have started showing volatility. Going forward, this trading gap is likely to increase further, he said. 

“Investors and traders need to take more caution, as the US markets which were in a bull run and wasn’t impacting much to the Indian markets, will now adversely affect it,” said Singhvi. “Global markets indication is more important from now on and traders and investors should be ready for both intraday and overnight position.” 

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Singhvi pointed out that the US markets are volatile as it is divided into two sections, which have different approaches towards the market. The first one has a long-term view and believes the market eventually would grow and the other category worried about the current level of overheating of the economy amid rising inflation. 

He explained, the first category of fund managers see growth and aim to earn more from equity, even after lifetime high they want to invest in US markets keeping of one to three years period. 

Singhvi said the equity market requires time to clinch its new level, it doesn’t happen overnight and this goes with irrespective to any country’s exchange market. 

On the other hand, Singhvi explained, the other category fund managers are of a view that the bull run in US markets have stopped, and the best period is over. He says, the market always gives reaction before time, with the economy overheating and inflation rising, US Fed will start sucking the liquidity and would eventually increase interest rates as US Treasure Secretary Janet Yellen indicated. 

SInghvi further said these fund managers want to be in cash by withdrawing themselves from equity, as being concerned about the overheating of the economy. 

The US market majorly is dangling between the tussle of these two sections of fund managers, however, both side investors are getting aggressive, mentions Singhvi.