“The biggest problem of all in asset allocation, globally, for investors, is the agency problem. People are managing other people‘s money and they have different incentives,"Economist and author Jerome Booth told CNBC-TV18.
As a part of CNBC-TV18‘s RD-360 series, market expert Ramesh Damani spoke to economist and author Jerome Booth and discussed his concerns in the developed markets and his outlook on India and the other emerging markets.
Global markets have been volatile over the last few sessions. In an interview to CNBC-TV18, Jerome Booth, Ashmore Investments says emerging markets are still remarkably cheap. "I think there is still a very bullish feeling about emerging markets. There is much more upside," he adds.
Jerome Booth, Ashmore Investments believes that equity valuations in emerging markets like India are getting better and sees lot of opportunities for investing in the country.
Jerome Booth of Ashmore investment doesn‘t expect to see significant positive announcements from the European Union summit starting this Thursday.
Most investors are going negative on India more so after rating agency S&P expressed concerns about fiscal deficit and growing economic problems. However, Jerome Booth of Ashmore Investment holds a very different opinion and thinks India shouldn‘t be paying too much attention to rating agencies.
As far as India is concerned, Booth says, equities here are at a premium to other EMs.
Developed countries are risky gambles, says Jerome Booth of Ashmore Investments. In the current situation, he advices institutional and retail investors to stay away from the developed world.