BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Quantum Advisors Report
The Growth and Markets Conundrum -The Equity markets are back near all-time highs. Gross domestic product growth is at all-time lows.
This conundrum is not recent. For the last five years, we have seen equity markets rallying despite growth slowing and corporate earnings flat.
In this piece, we show through historical analysis that over the long term GDP growth indeed matters to corporate profits and stock market performance.
Long periods of good stock market returns come through in periods where GDP growth is also rising and growing above its potential.
In the short run though several factors, including market liquidity, momentum, sentiment and global central bank action can drive valuations out of sync with macro fundamentals.
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