Don‘t see signs of an imminent bear market: Hans Goetti

The recent correction in global stocks notwithstanding, equities will continue in the bull market terrain, according to Hans Goetti, Head of Investment – Asia, Banque Internationale Luxembourg.

In an interview with CNBC-TV18's Anuj Singhal and Ekta Batra, Goetti said that there were two signs of an imminent bear market. “You need an inverted yield curve or the prospects of a recession in the next six months, neither of which I can see,” he said, adding that the recent downturn in stocks was normal for a bull market, which has not seen a significant correction in three years.

Further discussing global markets, he said that India could be a beneficiary of flows leaving its emerging markets counterpart Brazil, which has reacted negatively to the reelection of Dilma Rousseff.

A further weakness in global crude oil prices – thanks to political (Saudi Arabia not reducing output as lower prices hurt Iran and Russia) and economic (world economy, barring US, remains soft, leading to weak demand) reasons – could further benefit India, he said.