Investors should work with one basic assumption i.e. ‘what worked in the past might not work in the future,” says Kenneth Andrade, CIO, Old Bridge Capital Management.
Investors should work with one basic assumption i.e. ‘what worked in the past might not work in the future,” says Kenneth Andrade, CIO, Old Bridge Capital Management in ‘The Market Podcast’ with Moneycontrol.
If we look at the last three decades – one decade was dominated by IT & ITES, the decade that followed next had the best macroeconomy (2000-2010), and last decade which we saw was dominated by consumer and consumer cycle (banks, NBFC, financials, etc.).
Now, as we go forward, the next decade will not be a repeat of what we saw in the last decade. “We are looking at reasonable weak macros, and India is probably will behave a lot like what happened in the 90’s,” said Andrade.
“If we are right, it could well turn out to be a golden period of equity investors and corporate India. What happened in the ’90s is that a lot of corporates turned their attention towards 100% of the world economy. And, we created large multinationals,” explained Andrade.
In the next decade, a lot of corporates will come out with efficient business models. Remember, India's story is just 3% of the world's GDP.
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