The Budget What do you do now ?

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preferred.

Experts, however, reckon that having a 5% to 10% allocation in gold and gold-based exchange traded funds would be a smart move, considering the pressure on inflation due to high oil prices. Strong oil prices and a weakening dollar, as is being witnessed now, are known to spur gold prices. These are anyway ruling at historically high levels at the moment.

Commodities, especially agri-commodities and select metals, are expected to perform extremely well in the coming years. The wheat shortage and rising price issue is escalating around the globe and is on the radar for most commodity traders. However, with the introduction of commodity transaction tax, frequent churning and excessive trading will become expensive and is avoidable. Taking a three- to six-month view on commodities and then reducing the extent of trading could be just what the doctor prescribed.