IN­DIA MOST PRE­FERRED AMONG EMs ‘Cor­rec­tion Likely to be Short-Lived’

The Economic Times - - Companies: Pursuit Of Profit -

Head of Re­search, Ash­more Group Emerg­ing Mar­kets CIO, UBS Wealth Man­age­ment

Se­nior In­vest­ment Strate­gist, Wells Fargo As­set Man­age­ment Head of Re­search-Asia, Julius Baer

JAN DEHN | The global back­drop has be­come some­what more fluid, less cer­tain. The strong dol­lar re­cov­ery af­ter Friday's pay­roll num­ber and Pres­i­dent Trump's ag­gres­sive rhetoric against Korea are roil­ing mar­kets against a back­drop of low summer liq­uid­ity. On the do­mes­tic front, a ques­tion mark hov­ers over the RBI's will­ing­ness to con­tinue to cut rates de­spite lower in­fla­tion. In­vestors should use pull­backs to add se­lec­tively in value op­por­tu­ni­ties, but not change over­all bullish po­si­tion­ing

JORGE MARISCAL | Cor­rec­tions are in­evitable in the medium term. Their mag­ni­tude is im­pos­si­ble to pre­dict, but I don’t see a ma­jor cor­rec­tion as a base case sce­nario from ei­ther in­ter­nal or ex­ter­nal sources. If it were to oc­cur, it would be seen as a buy­ing op­por­tu­nity. The In­dia in­vest­ment theme is still early in its mul­ti­year cy­cle

BRIAN JACOBSEN | Some­times cor­rec­tions come out of the blue, but the key is that any cor­rec­tion would likely be short-lived. As long as the econ­omy re­bounds, any cor­rec­tion would likely be fleet­ing

MARK MATTHEWS | Many peo­ple were just look­ing for an ex­cuse to sell and they have one with North Korea. What goes up the most would prob­a­bly also cor­rect the most sim­ply be­cause that’s where the big­gest prof­its are. In 2008, In­dia had noth­ing to do with the global fi­nan­cial cri­sis and its econ­omy was to­tally fine but the In­dian stock mar­ket fell even more than the Amer­i­can mar­ket sim­ply be­cause peo­ple sold the mar­kets that were fur­thest away. On that ba­sis alone, the par­al­lel to­day is that peo­ple will lock in prof­its in things they have made a lot of money in and that in­cludes In­dia. How­ever, In­dian mar­kets re­main high in pref­er­ence or­der among emerg­ing mar­kets

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