The Tantallon India Fund closed up 3.12% higher in March despite the overhang of higher crude oil prices and continued selling by foreign institutional investors with improved market breadth, reduced volatility and domestic institutional fund buying serving as a balm.
Reflecting on the events and market action over the last three months, it feels appropriate to hit a reset button. We feel certain that this is one of those inflexion points on market sentiment and direction which we are going to look back on with some chagrin. Acknowledging uncertainty and the high likelihood of looking “silly” when looking in the rearview mirror, we want to commit some thoughts to paper as reference points on what we are wrestling with in real-time.
• Powell’s pivot makes it clear that the Fed is behind the curve and we should be expecting the Fed to tighten monetary policy. The strength in the US economy and persistently elevated inflationary expectations would seem to demand far more restrictive policies can try and re-establish “price stability”.