Wednesday, October 12, 2022

Have you understood 'outperformance' right?

Let us get this right-

Most of us are hearing and convinced that India is and will outperform. Even with IMF, World Bank, and major Wealth managers and fund houses voice the same,internationally.

What is often misunderstood, is outperformance is considered in hindsight as 'market up', which needs to be understood and nailed clear in understanding.

Yes, world GDP growth estimated is lower than Indian GDP growth estimates- that is clear.

Yes, If a particular market grows by 10% and Indian market grows by 14% that is outperformance, but please also get this right, that if other market/s has fallen by 10% and Indian markets has fallen by say 6%, even that is outperformance. (like currently we see in currency comparision fir INR)

So outperformance should not be misunderstood as 'upside', but better performance and does not mean, not going down or falling.

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