Asian mkts to perform better than US, Europe: Tyche Group

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Martin Hennecke , Sr Manager,  Tyche Group said that relatively Asian markets are performing better than their counterparts in the US and Europe. "We expect the global financial crisis, especially in the US but we still hold positions in Asia especially in China today," he added.

 

Hennecke added that they are also heavily into gold and precious metals as hedging in this crisis.

 

Excerpts of CNBC-TV18's exclusive interview with Martin Hennecke:

 

Q: Whatever is happening globally with redemption pressures, pressure coming in from yen side as well, and of course, the subprime woes, how much of an implication do you see on the emerging markets and markets like India in particular?

A: It's always a tricky question. Relatively speaking, we still think that Asian markets will be performing much better than US and Europe. But as you have been emphasizing, especially lately, the US problems that we see in the sub prime market is not limited at all to the sub prime. It's not just the housing problem. The US economy as a whole has been completely hollowed out over the last 20-25years and it's in disastrous shape. So we expect an absolutely massive financial crisis out of the US, perhaps something as you had seen in 1929 or perhaps worse, because this time even the government is struggling to actually pay their debt.