See classic bear market rally in Asia: Javelin Wealth Mgmt

Stephan Davis, C-E-O of Javelin Wealth Management believes that we are seeing a classic bear market rally in Asian markets. With a cautious note he adds that one need to try and step away from this short-term noise that is exciting people.

India along side China is probably looking reasonably attractive at current levels but it is more of a stock pickers market said Davis

Excerpts from CNBC-TV18's exclusive interview with Stephan Davis:

Q: We have seen crude still remain pretty unrelenting, it is off its highs but it is not breaking down below that USD 130/bbl with the exception of Nikkei most of the other Asian markets seem to have entered some sort of a lull phase. In this phase which sector and themes and which markets would you look to be building up on your positions?

A: We have been very conservative and cautious since the middle of last year. Actually I see very little by way of optimism in some of the recent market moves. I think it is a classic bear market rally and one needs to try and step away from some of the short-term noise that is getting a lot of people very excited and look at the bigger picture on a global basis. If one looks at that the outlook is still relatively negative starting in the US and flying all the way through into Asia.

I think that India along side China is probably looking reasonably attractive at current levels but it is more of a stock pickers market than it was 12 months ago when it was more of a macro story.

Q: What are those stocks if at all you have exposure?

A: Our preferred play really is to look at straight forward market Exchange-traded funds(ETFs). Individual funds which have a demonstrated track record, so we don’t tend to focus on individual stocks ourselves preferring to try to pick up good managers who can out perform the market and  list of those is relatively short at the moment.