ET Money
February 10, 2025 at 12:42 PM
Does GDP growth really drive stock market returns? Not exactly! While the economy and markets don’t always move together, one key metric—𝗥𝗲𝘁𝘂𝗿𝗻 𝗼𝗻 𝗘𝗾𝘂𝗶𝘁𝘆 (𝗥𝗼𝗘)—plays a bigger role in long-term returns.
India’s 𝟭𝟬-𝘆𝗲𝗮𝗿 𝗮𝘃𝗲𝗿𝗮𝗴𝗲 𝗥𝗼𝗘 𝗶𝘀 𝟭𝟰%, higher than China, Brazil, and most of Europe. Plus, 34% of Indian companies have a long-term RoE above 20%—one of the best globally!
But what exactly is RoE and why does it matter for your investments? Watch this video to find out.
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