The year 2020 was a year of new normal, not just markets, businesses but also the way we eat, drink, and invest. Indian markets did well in comparison to developed markets peers and the rally is likely to continue in 2021 at least in the near term, says Abhishek Banerjee, founder of LotusDew.
With returns of 15 percent in the year gone by, India as a country grabbed the fifth slot when compared to returns from Korea (up 31%), Taiwan (up 23%), the US (up 16%), and Japan (up 16%).
The big question in front of investors is what is the way ahead for markets?
“The rally is likely to continue in 2021 as well considering the fact that India will remain to be an attractive investment destination among the Emerging Markets (EMs),” Banerjee said in the D-Street Talk podcast with Moneycontrol.
Abhishek Banerjee has over a decade of experience with asset allocation, portfolio construction, and quantitative investments.
“We run a systematic process that captures the global sentiment in terms of actual investor actions. This can be done by analyzing ‘leverage’ across the globe,” he said.
Brokers enable retail and professional clients to take leverage and that leverage is available in the form of margins. And, if you aggregate this margin globally you come up with a net margin position, explains Banerjee.
He further added that if you an investor and not very confident about the forward-looking view of the market you would use less leverage, but in case you are confident you are likely to use more.
After analyzing the data, it looks like there is no risk-off at an aggregate intelligence. So, we do not recommend taking money off the table in a meaningful manner and there are still more legs left, added Banerjee.
(Tune in to the podcast for more)
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