The forecast of Top 10 Trends of the Global Economy 2021 <\/em><\/strong>by\nthe reputed mind of the Wallstreet can be notably taken as below:<\/p>\n\n\n\n Trend#1: Surging economy, sluggish stock\nmarket<\/strong><\/p>\n\n\n\n With the dooming of the global economy, the stock market actually boomed\nin the year 2020. While the India GDP 2020 fell to -8% (World GDP 2020: -4%),\nthe India Stock Market 2020 saw a rise to 12% (World Stock Market 2020: 13%).<\/p>\n\n\n\n The trend for 2021 is expected to be the mirror reflection where the\nnational & world GDP is forecasted to rise higher on the positive side\nwhile there would be a downfall in the stock market. This disruption is\nattributed to the massive amount of stimulus pushed into the economies by the\nGovernments. The overall stimulus plunged into global economies in the 2020\ncrisis is approximately 5xTimes the stimulus that was pushed during\nthe 2008-09 Global Financial Crisis.<\/em><\/strong> <\/p>\n\n\n\n Trend#2: Inflation set to rise<\/strong><\/p>\n\n\n\n The inflation after 20 years of low & stable pace is long-due in\nplay and the economic contraction of 2020 has simply made the situation more\nvulnerable.<\/p>\n\n\n\n As per the market situation, the triggering of inflation to rise can be\nassociated to the following 4-D\u2019s:<\/p>\n\n\n\n Although inflation is gradually a slow process that takes years to peak\nbut it wouldn\u2019t be wrong to say that the seeds have been sown!<\/p>\n\n\n\n Trend#3: Interest rates could rise<\/strong><\/p>\n\n\n\n Rise in inflation directly result in the\nrise of interest rates.<\/em> There was a decline\nin interest rates in India since 2018 but they were still higher than the\nglobal levels. One more trend that would be accompanied is with the higher interest rates, share prices would no longer boom<\/em>.<\/p>\n\n\n\n Higher interest rates will be bad for the stock market. In the current\nscenario, the global value of the financial economy (stocks & bonds) is\nactually 4-times the value of the underlying economy (GDP). Although, with\nhigher interest rates, one would get a higher value return on the savings too.\nAll one has to consider is the net return on savings with the increase in\ninterest rates against the increase in inflation.<\/p>\n\n\n\n Trend#4: Best time to buy property<\/strong><\/p>\n\n\n\n Honestly, homes are most affordable in India than ever. This decline in\nproperty prices in india is in contrary to a hike in the global market. The\nreason behind this could be the real estate boom in late 2000\u2019s when there was\nan oversupply of real estate assets. This has lead to a negative change in\nproperty prices if not stagnant while the people\u2019s income has increased over\nthe years. Ultimately favoring the affordability factor of buying a property. <\/p>\n\n\n\n This happens to be a great time to buy real estate property at a fixed\nrate mortgage for the current years before the interest rates tend to go\nhigher. The property plays as a hedge against inflation, that means with increase in inflation the property\nprices are supposed to do well and rise higher!<\/em> With higher affordability ratio, better interest rates and lower cost,\nthis is sureshot the best time to buy property.<\/strong><\/p>\n\n\n\n Trend#5: Decline of US dollar<\/strong><\/p>\n\n\n\n USA has been dominating the world in terms of global reserve currency\nfrom 1920 till date. To look at historic trend, an average period of this\ndominance has been of 94 years as below:<\/p>\n\n\n\n Source: NDTV<\/em><\/p>\n\n\n\n What supports more to this fact is the amount of currency being printed\nin the country. If compared to the previous 20 years (2000-2019), the U.S. Dollars printed in 2020 alone is\nequivalent to what was printed in the previous \n5 year period! <\/em><\/p>\n\n\n\n 20% of all the USD circulated globally was printed in 2020 alone!<\/em><\/strong><\/p>\n\n\n\n Source: NDTV<\/em><\/em><\/strong><\/p>\n\n\n\n As an alternative, bitcoin is booming with a market cap that equals to\n$700 billion approx. with a rise in value up 300% in past 12 month and\ndecreasing volatility has made bitcoin subsequently more stable.<\/p>\n\n\n\n Trend#6: The commodity revival<\/strong><\/p>\n\n\n\n The commodities like oil, steel & minerals have seen the \u201crise &\nfall\u201d in a such a repeatitive manner that it can be termed as a Pattern! <\/em>The pattern has been consistent\nover the last centuary and is forecatsed to continue. <\/p>\n\n\n\n Seeing the trend of fall in commodity prices since 2010, there is a huge\nchance of it seeing a surge given the pattern of history. Also to support the\nfact, it should be duly considered that there has been commodity price rise\nwhen the U.S. Dollar has weakened in the past.<\/p>\n\n\n\n Source: NDTV<\/em><\/p>\n\n\n\n Trend#7: The comeback of developing\ncountries<\/strong><\/p>\n\n\n\n A good news for India, there are strong signs of comeback for the\ndeveloping countries in the coming years. With the pandemic-inspired\ndigitization (and pre-pandemic momentum towards digitization in India), the\nexpected annual growth of digital revenue 2020-2024 is set to reach around 13%\nin developing countries as compared to 11% in emerging markets & 6% in\ndeveloped markets.<\/p>\n\n\n\n With a much greater need than ever, economic reforms in developing\ncountries like India would drive productivity higher and therefore, could lead\nto better economic growth. Also, with higher attention given to attract foreign\ninterest & foreign capital with industry setups, India is on path to make a\nnoticeable comeback. Last year, India attracted 23 billion USD of foreing investor\nflow ranking only second to China.<\/p>\n\n\n\n Source: NDTV<\/em><\/p>\n\n\n\n Trend#8: Spread of the digital revolution<\/strong><\/p>\n\n\n\n With China leading the digital revolution with 8% of digital revenue as\npercentage of GDP, India is still at 2.5% but growing at a positive pace. The\ndigital revolution is still a young & advancing with momentum that is set\nto rise in developing countries with newer technological players coming into\nplay.<\/p>\n\n\n\n With growth in digitization, there will be a surge in economy especially\ndue to ease in the financial banking sector as well as opening stock market to\nmore players!<\/p>\n\n\n\n Trend#9: Rise of new challengers<\/strong><\/p>\n\n\n\n As per stock market trends, the top 10 stock of any decade would see an\naverage growth rate of 2073% and it would fall to mere an average growth of 63%\nin the subsequent decade. Just like Amazon, Facebook, Google and many of the\ncurrent global top 10 of the decade weren\u2019t actually in the list in the\nprevious period, something similar is assumed in the current cycle too!<\/p>\n\n\n\n The disappearance of current giants is set in play due to their large\nsizes & slower growth. Also, the consumer taste change with change in\nconsumer behavior & surroundings! From an individual investment point of\nview, it is highly suggested to not make a substantial investment in the top\ncompanies as their growth rate would tend to drop. Instead, a preferable choice\nwould be new upcoming challengers who are more local and cater to the user\nneeds in a more attractive way. <\/p>\n\n\n\n Trend#10: The end of TV…except India<\/strong><\/p>\n\n\n\n With a decline in TV viewership in USA, India is comparatively a more\nstable market that saw a growth of 7% in TV viewing. Although India also\nwitnessed 136% increase in paid video streaming like netflix, hotstar &\nprime videos.<\/p>\n\n\n\n The pandemic has accelerated many trend that were already in play and\nwith change in the user lifestyle and availability of \u201cOn-Demand\u201d content,\nwatching television in a linear way is largely on decline. Although many such\ntrends will see a downside when people get back to somewhat older lifestyle but\nthis hype of OTT is forecasted to outlast the pandemic era.<\/p>\n\n\n\n With life returning to pre-COVID normal in many countries where people\nare going out, dining, traveling, spending & exploring at almost same pace\nas before, the world can be said emerging out from one of the worst crisis in\nterms of economic contraction in the last 75 years. Let\u2019s grab this lemon-19\nsituation and make the best lemonade out it with these structured &\nwell-forecasted trends while we still have time to act on them.<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" The world might have witnessed a never-seen-before situation in the year 2020 and the global economic flows might have been disrupted to a huge scale. But what is important today is the time ahead of us – the year 2021 and beyond. Understanding the current economic situation is very important to adapt & grab the best out of the global market trends. Explaining with deeper insights, we have broken down the analysis by Mr. Ruchir Sharma into a much simpler tone for our readers. Mr. Ruchir Sharma is the head of Emerging Markets Investment and Chief Global Strategist at Morgan…<\/p>\n","protected":false},"author":1,"featured_media":17569,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-6881","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate"],"acf":[],"yoast_head":"\n![\"\"](\"https:\/\/www.ashianahousing.com\/real-estate-blog\/wp-content\/uploads\/2021\/01\/image1-1024x768.png\")
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