Bahrain CA’s review World Macro Economic Situation
TDT | Manama
The Daily Tribune – www.newsofbahrain.com
BCICAI, Bahrain Chapter along with TIW Capital Group hosted a seminar on the rising complexities of the global macro environment, and how can investors navigate this investment maze to insulate their investment portfolio.
The knowledge seminar was held at the Crowne Plaza in Bahrain last week. Mohit Ralhan, the Managing Partner of TIW Capital Group, drew upon his more than two decades of Fund management, investment, consulting, and operating experience to make investors aware of the multiple pitfalls or multiple bazookas, as he termed them, that can fire on their investment portfolio and offered his insights to create effective mitigants.
Ralhan gave multiple examples of previous economic contractions to differentiate between recession and depression. He pointed out that during complex times where there is an interplay of multiple macroeconomic factors, central banks not only cut interest rates but also money supply, and this dual action, often, creates a chain of events, leading to elongated recession or depression.
He took the audience through case studies of 1929’s great depression and the short-lived recession of the post-war 1940s to not only drive home his point but also make investors learn from the history.
Ralhan emphasized that the current environment looks more complex in comparison to the previous pre-recession environments since a pandemic, an impending war, a pent-up demand, supply disruptions, labour shortages & higher wage hikes resulting in persistent inflation.