Are you more constructive on the market in India or are you more constructive generally for risky assets and where would India be? Is there a chance of outperformance because we have seen our share of valuation adjustment, or we would move in line with the rest of the world?
I will talk about emerging markets first and about India within that. So, when does the Fed goes on pause? It is going to be soon. Everyone is going to be searching for growth because we know that there is a downturn coming in the global markets and that is where emerging markets come in.
So, emerging markets will be your first port of call where you are going to see growth either from a recovery or for just general growth compared to the rest of the world.
Relatively China, Taiwan and Korea are cheaper than India. So, this first half of the year you see more flows towards there and India will get some flows but might be an underweight kind of weighting.
The second half of the year, I do believe that you are going to see that as earnings start to accelerate, that is when we will start to see the flows. So, for us, it is a tale of two halves, which I am trying to point out.
But I think emerging markets always, since I can remember, once the US goes into recession and interest rates start to fall, emerging markets do well.
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