Bhanu Choudhrie is a learner and studied individual.
Bhanu Choudhrie must be a learner of the world because this is what will give him an edge in his investing and help him get the returns that he seeks. He knows that the benchmark is the traditional stock markets and the traditional stock markets can bring in around 6-7% returns and might even near 10%.
Bhanu Choudhrie must have a keen sense of economic conditions within the U.S. and other countries. At the current moment, the U.S. looks amazing when factoring in unemployment, when factoring in strong GDP growth, and when looking at other concrete factors. Yet, the bond market tells a different story.
Bhanu Choudhrie would see that the bond market is something that one should certainly look at when determining the health of a country, it’s economy, its stock market, and how one should act. The bond market may indicate that a slowdown is coming, as such, investors should be watching and looking to allocate value in a way that protects their current wealth. They do not want to compromise what they have for potential gains, only to see that it has been lost or cut in half.
One may see that while the economy is very strong now, there may be other issues that can lead economy astray and cause it to give back its overall gains. One can also know that yield curves only start to indicate recessions when it will take place in about a year or two.
Next, individuals must watch and wait for the showdown between the US and China. This is an important factor because the economy is one that is now globalized, this means that transactions occur in a more global fashion as opposed to a domestic one, this means that individuals will have to watch for the movements present within this relationship.