US to outperform most EMs in medium-term: Deutsche Bank

Deutsche Bank's global emerging markets equity strategist, John-Paul Smith is betting on the US. In an interview to CNBC-TV18, Smith said that the US is likely to outperform most emerging markets in medium term.

However, he is quick to add that India too could do well if commodity prices fall.
"If commodity prices continue to fall and that happens independently of equity markets, it will be a bullish sign. Fall in commodity markets, particularly industrial metals and energy, would inject liquidity back into the global economy.Within EMs, India might do quite well too," Smith explains. Here is the edited transcript of his interview. Also watch the accompanying video. Q: Do the global markets still resemble a big bearish patch?
A: On a structural basis, the global markets are now bumping somewhere around the bottom. It is a very dangerous pronouncement to make because there is a possibility of a sovereign accident in Europe.
A Greek default is discounted as far as any event that can be discounted. But, the focus will then shift to some of the other countries. I am a little less pessimistic than other people in the market.
We have seen a structural underlying improvement in the fiscal situation in the economies of countries like Spain and Ireland. Assuming we don