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Macro Trend of the Past Decade

• GFC Crisis
• US Fed + ECB in action with QEs
• ECB has continued its bond buying program till date.
• Interest Rate trend/ rising Bond Prices
• 0% Japan for past decades
• Negative rate in Europe since 2014
• USA 10 year reached ~1.5% by 2019
• ROW rates lowered to 2-6% band (mainly in Asia)
• Bankruptcy and consolidation in many sectors
• Almost 3 Trillion Dollars of retail savings moved from Equity to Bond markets in USA over decade
• Large institutional participation in Equity markets across globe through MFs/ ETFs
• Huge appreciation in valuation of growth stocks and under/ declining valuation of value/ asset based businesses.

• Very low level of capacity creation across globe, barring China
• Austerity measures in some countries in Europe
• Deflation in Commodity Prices
• Unprecedented COVID-19 Crisis and still continuing
• Lock down across globe (first time) beginning March 2020 following China
• Unemployment across globe, with USA touching -20%
• USA Fed swung into action with massive bonds buying program (Corporate + Government)
• US Government’s massive stimulus in terms of direct payment to citizens, to the tune of almost US$ 2 Trillion, leading to rise in retail savings
• Fed lowering rate to ~0% for long foreseeable future
• Europe, Japan and other Governments followed the path to protect their economy
• Speedy approval of vaccines and implementation of vaccination across the globe
• Slow and measured opening up of economic activity by all Governments, keeping close eye on COVID-19, mutation, death, etc.