Brazil tactically more attractive than India: Oppenheimer
Published on Wed, Nov 22, 2006 at 09:54 | Source : Moneycontrol.com
Updated at Thu, Nov 23, 2006 at 15:56
Like this story, share it with millions of investors on M3
0
Like this story, share it with millions of investors on M3
Brazil tactically more attractive than India: Oppenheimer
Michael Metz, Chief Investment Strategist at Oppenheimer & Co is concerned that India’s growth speed and high markets may result in a sudden and quick correction
Michael Metz, Chief Investment Strategist at Oppenheimer & Co has a tough job choosing between India and Brazil, and he has chosen Brazil.
Michael Metz says that they have cut weightage on India due to the speed in which the market has risen, and has nothing to do with the fundamentals of the market.
Excerpts from CNBC-TV18's exclusive interview with Michael Metz:
Q: What worries you about India? Are you cutting India to underweight on account of valuations?
A: India is a terribly exciting market, there is no question about it. But I think it is too much too soon, and on a tactical basis, I think Brazil is much more attractive at the moment.
Q: Is that the general sentiment across fund managers, because the money flows we have had particularly from the outside have been very strong this month?
A: I don't think that is the general sentiment. Though there is a fear that the market is generally stretched too high and is vulnerable to a sudden and quick correction and there is considerable anxiety about that, most people around are committed to markets and still have to put money to work.
Q: How significantly would you cut your weightage in India and which stocks would you churn out off?
A: It is really not a stock specific call; it is really a call on the degree of speed with which the Indian market has risen and that is the cause for concern, it is really not a fundamental issue at all.
The same problem exists here in US as well. The market is not terribly expensive, but we have had a spectacular move, and a lot of it is momentum driven. I have a feeling that is true in India also, and that always raises questions of vulnerability.
A: It is really not a stock specific call; it is really a call on the degree of speed with which the Indian market has risen and that is the cause for concern, it is really not a fundamental issue at all.
