Moneycontrol
Sep 13, 2017 09:48 AM IST | Source: CNBC-TV18

Ridham Desai feels upside potential in 3-5 yrs from multi-yr growth cycle not being priced in by mkt

We don't think the market is pricing in a multi-year growth cycle, implying meaningful upside potential to stocks over the next 3-5 years, says Ridham Desai of Morgan Stanley.

Ridham Desai feels upside potential in 3-5 yrs from multi-yr growth cycle not being priced in by mkt

Ridham Desai of Morgan Stanley said, "This is a bull market and, therefore, we continue to be a buyer, especially on any dips, albeit we expect a moderation in returns in the months ahead. Midcap valuations look stretched. Additionally, stocks of some high-quality companies look rich too."

"Cyclically adjusted valuations are now nudging 5-year highs, as is the market cap to GDP. Most other valuation metrics look reasonable, though valuations on their own - unless at extreme points - rarely give a clue of where stocks are heading."

"We also don't think the market is pricing in a multi-year growth cycle, implying meaningful upside potential to stocks over the next 3-5 years," he added.
Sections
Follow us on
Available On