Avinash Persaud, Chairman of Elara Capital PLC and Intelligence Capital spoke to CNBC-TV18 from the sidelines of its two-day conference titled Elara India Dialogue 2017.
Talking about the currency markets, he says we are on the edge of major dollar devaluation. Dollar is down about 8 percent from its highs one-year back and could fall a further 20 percentage points, he adds. This would augur well for the rupee but even better for emerging markets commodity exporters. The US exporters would also do well, he says.
According to him, the dollar will fall until the Fed is prepared to raise interest rates to defend the dollar and that is likely a long way away.
Talking about the biggest risk for global assets, he says because of ample liquidity in financial market, almost all markets are overvalued and so it is a tough time to be an investor.
Moreover, the bond markets to look as they are most overvalued of all the markets and are vulnerable to shock but is hard to justify near zero levels of yields.
According to him, corporate tax cut in the US will lead to more money in hands of corporates to buyback more of their stock, and so the US stock market rally will likely continue.For the entire interview, watch video