In an interview to CNBC-TV18, Robert Parker, head- strategic advisory group Credit Suisse Asset Management says the recent upswing that global equity markets are witnessing may start to moderate soon. Current levels have him worrying that consolidation is on the cards as there is plenty of global macro news for markets to consider.
However, Parker says the biggest risk is what stems out of the Middle East due to concerns over supply disruptions by Iran. The elevated price of crude oil is proof of this. These political risks can lead investors to book profits, he adds. Below is an edited transcript. Watch the accompanying video for more. Q: What are the reasons that you have pinned down for this global rally? Do you think we could see some more follow through hereon?
A: I worry that for the rest of March, going into April, the upside in global equity markets may actually now moderate. There is a real risk over the next two-three months after a very good rally that we have had so far this year. A market like India is up over 15% year-to-date (YTD), Brazil is up 17% YTD. So, good gains really across the board. I am concerned that we may consolidate around current levels.
We have got a number of factors supporting markets at these levels such as central bank easing of monetary policy and the great success of the LTRO program in Europe and specifically on India, the trend now is very clear, which is the monetary policy will now be eased. But we do have a few hurdles. A number of those hurdles are political. We are concerned about the geopolitical risks in the Middle East and that
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
