Fineman believes India will turn out to be stronger compared to other markets in the current global environment
Sharing his views on investing in equities, Fineman said that he sees Asian equities to be cheaper than equity markets in the US and believes India will turn out to be stronger compared to other markets in the current global environment.
Dan Fineman, co-head of equity strategy-Asia Pacific at Credit Suisse, sees the world’s largest economy US slipping into recession but expects its impact to be mild. Moreover, he is of the view that a slowdown in the US economy could benefit Asia, including Indian markets.
“A slowdown of the magnitude that we’re expecting for the US actually could be pretty good for Asia,” he said in an exclusive conversation with CNBC-TV18.
Fineman believes the US recession could weaken the dollar which could, in turn, benefit emerging markets.
Sharing his views on investing in equities, Fineman sees Asian equities to be cheaper than equity markets in the US and believes India will turn out to be stronger compared to other markets in the current global environment.
“I think that India still has some important strengths … it has a very robust economic cycle and a good structural outlook in an environment where developed markets are heading into a slowdown,” he said. “India’s good growth, I think deserves to trade at something of a premium.”
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He expects positive returns for India given upbeat growth in earnings adding that the main risk to the Indian growth story would be if the US recession is deeper than anticipated.
“I think that we can probably expect positive returns for India … you have good earnings growth, there isn’t a strong argument for the market to be derating,” he said. “If the recession in the US is deeper than we’re anticipating, then that would be quite negative for global equities emerging markets.”
On China, Fineman mentioned that it is still among the best choices for equity markets given cheaper valuations.
“Even after this great rally they’ve had in November, the multiples are still at a deep discount relative to the rest of the region and global equities,” he said.
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