Question

Is capital market will be the same in next years ? (e.g. is Investing in small- scale stocks will continuously beat T-bonds or not ? (explain )

Answer 1

No, I don't think that the markets are going to be same next year, because there have been a change in sentiments of the various investors, and there is a change in the economic cycle as well because the growth cycle had completely evaporated, and the economy has been expecting to slide into an impending reception, so that these treasury bonds are the preferred choice for the investor because they will offer the required security, and the government backing while equity will be a highly risky Investments.

At the times of impending reception, treasury bills are considered the safe Assets and a lot of money moves to these assets, because they want their protection of the capital. Small scale equity segment is always the avoidable choice, because they would be worst hit and some of them might not able to survive the overall crisis in the economy, so I will think that treasury bills are going to be the preferred bet, in the coming year because of impending recession unfolding in the United States economy and the Global markets.