New balance

The New Year is likely to bring a new set of challenges for investors, especially those who are about to end 2022 with an asset allocation that is quite ...

The last communication from the banking authorities mentioned a slight decline in consumer price inflation. The latter have triggered a spiral in input costs almost everywhere. A few ongoing investment plans may have to be altered in order to introduce the desired changes. Indeed, rebalancing of assets will be a major task for a large section of the investor fraternity in the days to come. An investor should be completely free to pull out of a fund and take the proceeds elsewhere. I have a short list — just three points — to offer. Ergo, this will be a serious matter for the ordinary participant. The central bank has shifted stance in favour of a less accommodative policy. While indices are advancing, not all sectors are participating in the trend. The fight against inflation will require the authorities to implement a few strong measures. The reasons for such skewed allocation patterns are not far to see. The latter, however, should be done in keeping with present market trends.