A: Yes, and I still would do the same.
Latha: But what do you do as a stock picker? This evening would you be looking at buying any of the emerging markets, developed markets? What are you doing with your money today?
A: I am not interested in today. When I invest money, I am interested in the next 5-10 years and I told you always over the last two years, I would rather invest in India than in the United States, which is an over-valued, over-promoted market. I would also rather invest in other emerging economies and in Europe than in the US.
Sonia: So, since you mentioned that you would invest in India rather than other economies, I wanted to ask you if you have been following the latest news flow that we have about the clamp down on black money that we had overnight. How much of a positive do you think it could mean in the longer run for India?
A: It is negative in the longer run. I do not believe the big corruption comes from bank notes. The big corruption is like Hillary Clinton, she carries around suitcases.
Latha: But do you expect there is going to be any protracted downturn since the markets were not prepared for a Trump victory. Are we going to see protracted, in terms of
time period as well, losses in equity markets?
A: My view is that regardless who would have won, the stock markets would have gone down. But, the market made a high a year ago at 2,134 on May 25, and then we went down and in January of this year, we dropped to 1,810 and then we recovered and made a new high at 2,193 on the Standard and Poor (S&P). If the market drops towards the low of this year, which is 1,810, the Fed will launch quantitative easing (QE
)-IV. The Fed will support the stock market. The moment it drops 10-20 percent, they will support the stock market.
- Source, Money Control