US earnings report will decide market trend: Tim Ghriskey

In an interview to CNBC-TV18, Tim Ghriskey, Chief Investment Officer (CIO) at Solaris Asset Management shared his outlook on global market.

See steady growth in demand going ahead: HSBC Below is a verbatim transcript of the interview: Q: Stellar Q1, no one is denying that but what is the story now, a lot of people have been predicting some amount of profit booking, some amount of fall is now bound to step in given the stellar run but that has not come, has it? A: It is coming a little bit today but we have not seen much in a way of pullbacks in the stock market. Since, this most recent rally began in mid-November, it has been a very strong rally and it has been fueled more recently by positive cash flows into equities. Money seems to be coming out of money market funds. Those flows are negative and going into equities. Fixed income is still, believe it or not, getting positive flows in the US. But the real flows appear to be going into equities not in big jumps but slowly and surely and that type of trend we think will persist for quite a while here, although there certainly will be some pullback. Q: As far as the road ahead goes, what is the biggest challenge for Wall Street, is it Europe, is it the deficit concern or is it probably its own steps as we said the big run up what we have seen in Q1 and now an impending pullback? A: It seems like the issue of the day keeps changing. More recently, it has been the Cyprus situation that is what has captured the headlines. Before that, it was certainly the peaked margins on Wall Street. We are of course going into earning season in the next couple of weeks in the US. As Q1 earnings will be reported, there will be real focus on those margins, are margins peaking and are revenues growing. Whether we go higher or lower will depend on the reporting of corporate earnings during the month of April.