Market Volatility Ahead: Stay Positive on US Equities and India ETF

Investors are advised to prepare for increased market volatility during September and October, a trend noted by BlackRock's Gargi Pal Chaudhuri. In a recent CNBC interview, she highlighted that both small-cap and large-cap stocks typically experience seasonal fluctuations during these months, a pattern observed over the past decade. The uncertainty surrounding the upcoming U.S. election further contributes to market jitters, leading to potential fluctuations in equity markets. Despite the short-term volatility, Chaudhuri maintains a positive outlook for U.S. equities in the medium to long term. She anticipates that high-quality stocks will perform well in the next six to twelve months, particularly as the Federal Reserve is expected to initiate interest rate cuts. Historically, such rate cuts have been beneficial for both stocks and bonds, and a 25-basis point cut is anticipated soon. Chaudhuri also emphasizes the importance of considering emerging markets, particularly India, which is gaining prominence on the global stage. She suggests that foreign investors should reassess their underweight positions in Indian equities, as the country presents significant growth opportunities despite its higher market valuations. The economic potential of India makes it a key area for future investment. In conclusion, investors are encouraged to navigate the current market volatility with a focus on long-term opportunities, particularly in U.S. equities and Indian markets. By staying informed and adjusting their strategies, investors can better position themselves for future growth amidst the uncertainties.