Investors should look at tangible assets: Tyche Group

Excerpts from Power Breakfast on CNBC-TV18 Watch the full show » RELATED NEWS Nifty may settle at 2700-3300: Collins Stewart See bit more volatility in mkts ahead: Quantum AMC See Sensex in 9K-11K range for next 6-9 mnths: UBS Sec Current rally to go on, eco growth seen lower: JP Morgan Rally to last for few more weeks: Asia Pac Asset Mgmt ALSO READ See what other FIIs are saying about the markets See what other experts are saying about markets See what Udayan Mukherjee is saying about the markets Nifty BSE | NSE 25/05/12 Are Mutual Funds betting on Nifty?

There has been a marked recover for couple of Asian markets like Nikkei which was down 6% is recovered and is down only by 4% and the Taiwan Index has recovered substantially. It is pretty much the same picture for Korean Composite, Straits Times, and Shanghai.

Martin Hennecke, Senior Manager, Tyche Group believes that a new American President cannot do much for the economy because the crisis in the US is going to get worse as the system is basically bankrupt and the government debt is out of control on all levels.

We recommend investors to look at tangible assets particularly gold and some other commodities, said Hennecke.

Here is a verbatim transcript of the interview with Martin Hennecke on CNBC TV-18. Also see the accompanying video.

Q: What is your sense after that rally we got pre the US elections do you sense that Asia is in tune to retrace most of these as negative economic data comes out and even rate cuts will not have any major impact on the markets?

A: At these levels that we are seeing today is- we like some Asian markets. We have seen the markets obviously completely hammered. Basically most of the Western investors have been deploying all the money in long/short Asian hedge funds or direct investments as they are really feeling this crunch.

But actually in countries like China in particular now are value and the macro economically many Asian countries are more stable than the Western one's. Also while- we don't think that it will get better with Obama as the President, as we do think the crisis will further deteriorate, even if we did have a great President there is little they could do in the US because the system is basically bankrupt and the government debt is out of control on all levels. So we think the crisis will get worse.

We recommend investors to look at tangible assets particularly gold and some other commodities and then some of the Asian assets that have slowed down substantially and particularly like Renminbi in the terms of Chinese companies.