The first reaction of global investors when they hear tapering and decline in liquidity, is a pullback from emerging markets and that is what happened over the last few weeks said Andrew Economos, Head-Sovereign & Institutional Strategy, JPMorgan AMC
Andrew Economos expects Fed Chairman Janet Yellen to taper by maximum USD 5-10 billion and does not see much impact of the same on global markets
JPMorgan AMC recommends investing in emerging market equity funds as it sees an upside in them. It also expects the dollar to weaken further due to the Fed's decision to delay the taper of its monthly bond-buying programme.
In an interview to CNBC-TV18, Andrew Economos, JPMorgan AMC speaks about expectations from the Fed on tapering its bond buying programme. He sees quantitative easing procedure to be lighter.
“We should start to see money flow in terms of the capital account into the EMs as well as money flow from financial flows and expect that to happen sometime in 2014,†says Andrew Economos in an interview to CNBC-TV18.
Talking about on India and China, Andrew Economos, Head-Sovereign & Institutional Strategy, JPMorgan AMC says both will continue to do well and attract investors.
Andrew Economos, JPMorgan AMC explains on CNBC-TV18 that the European crisis is still a concern but the situation may turn positive at the end of the first half of the current year 2013. Economos continues to see sideways movements in the Indian market and adds that liquidity will continue to be ample in the global economic system.
Bullish on global equities, Andrew Economos, Head, Sovereign & Institutional Strategy Asia, JPMorgan AMC believes that after the massive rally across overseas markets, there will be some consolidation in September-October given the fairly heavy event calendar - both political and economic.
Benchmark crude oil prices may continue to drop below USD 100 a barrel, easing pressure on the Organization of Petroleum Exporting Countries to raise output at its meeting this Wednesday, CNBC's weekly survey showed.