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Showing posts from April, 2025

How new US Tarrifs May Affect the Global Economy

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  As of April 2025, the United States has implemented a series of aggressive tariff measures, significantly impacting the global economic landscape. These actions, primarily targeting China and the European Union, have introduced substantial uncertainties and challenges for international trade and economic stability. Overview of Recent US Tariff Measures In early April 2025, the US administration imposed additional tariffs on Chinese imports on goods from the European Union. These measures are part of a broader strategy aimed at revitalizing domestic manufacturing and reducing reliance on foreign supply chains. However, the scale and abruptness of these tariffs have raised concerns among economists and global trade partners. Economic Implications 1. Impact on US Economy: GDP and Employment: The Penn Wharton Budget Model projects that the new tariffs could reduce the US GDP by approximately 8% and decrease wages by 7%. Additionally, a middle-income household ...

Corporate Earnings and Market Valuation Trends: Identifying Undervalued Stocks and Sectors for Mutual Fund Investments

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  The stock market moves in cycles, influenced by corporate earnings, economic indicators, and market sentiment. Understanding corporate earnings trends and market valuation metrics is crucial for investors looking to identify undervalued stocks and sectors for mutual fund investments. In the current market scenario, where volatility is high, selecting the right investment opportunities can lead to substantial long-term wealth creation. 1. Understanding Corporate Earnings Trends Corporate earnings represent a company’s profitability and are key indicators of financial health. Investors should analyse earnings reports to assess whether a company or sector is growing, stable, or declining . Key Earnings Metrics to Watch: Revenue Growth: A steady increase in sales indicates strong business operations. Earnings per Share (EPS): Shows a company’s profitability on a per-share basis. Operating Margin: Higher margins indicate better efficiency in operations. Ret...