'Foreign investors see a lot more positives in the outlook for India than they do in China,' says Ed Yardeni

Edward Yardeni, President of Yardeni Research, said that the geopolitical situation with wars between Russia and Ukraine, and Israel and Hamas, "really hasn't affected the price of oil"

During a recent CNBC TV18 interview, Ed Yardeni of Yardeni Research expressed his conviction that India will attract more foreign investments compared to China.

"Foreign investors see a lot more more positives in the outlook for India, than they do in China," said Yardeni. He highlighted Chinese President Xi Jinping's recent visit to San Francisco, noting that Xi seemed to be imploring foreign investors to return to China.

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Speaking on the state elections in India, Yardeni said that the results increase the chances of political stability in the country.

"Financial markets always prefer financial and political stability, if possible," he said.

Yardeni also remarked on the stance of Jerome Powell, the Chair of the US Federal Reserve, stating that they find themselves largely in "restrictive territory" concerning interest rates. According to Yardeni, this implies that there is no need for further "interest rate hikes," and the market sentiment has shifted from speculation about one or two potential rate increases to considering the possibility of one, two, three, or even four rate cuts next year.

"The fact that we are now talking about how much interest rates will fall, instead of how much they will increase is a good thing for emerging markets," said Yardeni.

He also mentioned that the geopolitical situations involving conflicts between Russia and Ukraine, as well as Israel-Hamas, have not significantly impacted the price of oil. According to him, these events have not been a concern for India because the Middle East holds paramount importance to the global economy, particularly in terms of the oil price dynamics.

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Another thing that benefits India in the economical competition with China, is that China is suffering from problems with "property bubbles bursting, and the aging demographics".

He also believed that "we're not going to have a recession next year". Yardeni said that he was firmly in the "soft landing camp" and remains positive on the overlook for stock markets overall. Yardeni believes we will see "two cuts" next year and not four.