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Writer's pictureRitika Kamboj

Framework for assessing market conditions

1. Global Economic Environment:

• Monitor major economic indicators like GDP growth, unemployment rates, and inflation.

• Keep an eye on central bank policies and interest rates.


2. Equity Markets:

• Check the performance of major stock indices (e.g., S&P 500, Dow Jones, NASDAQ).

• Look for trends, potential support/resistance levels, and any recent significant movements.


3. Fixed Income Markets:

• Review bond yields, especially government bonds.

• Understand the yield curve’s shape and changes, which can provide insights into economic expectations.


4. Currency Markets:

• Observe currency exchange rates, especially major currency pairs.

• Consider geopolitical events impacting currency movements.


5. Commodities:

• Monitor commodity prices, particularly for key resources like oil and gold.

• Understand supply and demand dynamics affecting specific commodities.


6. Volatility and Sentiment:

• Assess market volatility through indices like the VIX.

• Consider sentiment indicators to gauge market psychology.

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