Stocks vs Gold: Which asset could create more wealth in the Samvat 2083?
Samco Securities believes Indian equities are attractively valued against gold, with the Sensex-to-Gold ratio near multi-decade lows. It recommends increasing equity exposure in Samvat 2083 while retaining gold as a hedge, diversifying across sectors and geographies, and considering US ETFs amid crude oil, currency and global market risks.
Indian equities are currently more attractive compared to gold, with their relative valuations falling to levels not seen in three decades. The Sensex-to-Gold ratio stands at 6.43, significantly below its long-term median of 9.8 since 1990, and lower than 86% of its monthly readings over the period. Historically, similar levels have marked attractive entry points for equity investors, with Indian equities outperforming gold on each occasion.
Samco Securities recommends increasing equity exposure in Samvat 2083 while retaining existing gold investments as a portfolio hedge, due to the current valuation gap. However, they caution that global risks such as elevated crude oil prices, currency depreciation, and volatility remain important considerations for investors entering this period.
Brief written by urgent.news from The Economic Times - Top News's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 2 other outlets
- Patakha stock picks! ICICI Bank, BEL, 6 other stocks with 62% to buy this Samvat 2023. See full list economictimes.indiatimes.com
- Samvat 2083: Kotak Mutual Fund expects moderate equity returns, favours quality stocks thehindubusinessline.com
