The Tantallon India Fund closed 6.22% higher in May with very strong corporate earnings for the March quarter. This significantly exceeds market expectations, nudging the focus towards peaking new Covid infection rates and falling hospitalisations as local lockdowns seemed to have brought India’s second Covid wave under control.

Amid higher volatility over the last six weeks, global markets are struggling with the dissonance between rising inflationary expectations, elevated stock market multiples and risks to corporate earnings.

In addition, the central banks’ narrative of “transitory” inflation is at odds with the narrative of pent-up demand, sticky commodity prices, strained supply chains, prospects of an explosive economic recovery and a “new” Cold War rhetoric that is threatening fragile geopolitical detente and global supply chains.

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