The golden rule of investing was challenged in 2022
SummaryThe year was topsy-turvy for the world of investing, and the economic uncertainty isn’t going away soon. But old investment rules won’t become irrelevant.
In the world of investing, one dictum is universally accepted: equity earns returns, and debt provides safety. This was challenged in 2022, when both equity and debt prices crashed in advanced economies, leaving investors with no place to hide. India did somewhat better: while the MSCI’s emerging markets and global indices dropped 18.9% and 16.6%, respectively, MSCI India has earned 3.8% so far. Nevertheless, India’s returns were lower than what one would expect for one of the fastest growing economies in the world.