06 OCTOBER 2021 10:23 IST | ENGLISH | MONEY & FINANCES | GENERAL AUDIENCE

Vivek Iyer

Vivek Iyer

Chris Wood in his latest note, Asia Maxima, says that rotation into cyclical stocks has resumed with the Delta wave having peaked. He adds, Still, Wall Street-correlated stock markets are at risk from a market moving stagflation scare driven by surging energy prices. Gold and Bitcoin remain essential hedges against both the return of inflation and policies of currency debasement. Velocity will remain the key variable to monitor if and when the long-term downtrend in the turnover of money reverses Coming to India, he says the Indian stock market has remained extraordinarily resilient as the Jefferies Indian office’s Recovery Tracker indicator has continued to recover since the Delta wave peaked in May. The recovery tracker has risen from a low of 78% of the pre-Covid level in May to 108% in early September. He believes that there is growing evidence that a new residential property cycle has commenced after a seven year downturn despite the setback triggered by the Delta wave.

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