Inevitable correction: Retail investors must show patience

Long-term returns from broadly diversified equity holdings exceed returns from every other asset class

Indian investors have had to cope with the double whammy of poor global sentiment and a populist Budget in the last fortnight. Over this period, every major stock market has seen a sell-off and the bond markets have also gone bearish with rising yields. This global bearishness was provoked by the apprehension that the US Federal Reserve might accelerate its schedule for hiking policy rates. The US economy is expanding fast and, more specifically, employment is growing at a clip that may cause higher inflation. In addition, global crude oil and metal prices have risen significantly. The European Central Bank