Stock Markets Heading for a Bear Phase: Mark Matthews, Julius Baer

Business Standard’s Puneet Wadhwa speaks with Mark Matthews, head of research for Asia at Julius Baer, ​​to get his views on the way forward for global stock markets as they adjust to rising interest rates.

Topics
mark matthews | Julius Baer | global equity


Puneet Wadhwa |
New Delhi



Q1: With the US Federal Reserve and RBI making their intent clear, how do you see global equity markets developing in the rest of 2022?
Response:
> They will be choppy; many moving parts in the markets





>Aura of uncertainty hanging over the markets
>More chances of falling than rising
Q2: So, are you a falling buyer or a rising seller?
Response:
>Buyers must be agile
>The outlook is uncertain; do not advise people to engage in active trading
Q3: Is the global stock market heading into a bearish phase and will post negative returns in 2022?
Y:
>Stocks may be heading into a bearish phase
>Market trajectory has made a U-turn
>The general direction does not seem positive
Q4: Where is India in your pecking order? What other regions seem more lucrative?
Response:
>India has outperformed most YTD regions
>Domestic investors continue to buy shares; untapped potential
>Oil surge is a headwind for the Indian economy
>Earnings growth in FY23 will come from sectors not dependent on commodity prices
>Indian equities to perform in line with global peers
Q6: Inflation fears have been known for quite some time, but the selling in the last few days and weeks has been brutal. Has the liquidation been exaggerated?
Response:
>Markets have surprised in recent weeks
> Assuming we’re in a bear phase, three quarters of the pain is over
>US Fed tightening expectations will prove overblown
>Signs that economic growth is beginning to slow; will help cool inflation
Q7: Stocks and sectors worth investing in the Indian context?
Response:
>Stock does not overheat; global signals in focus
>Markets trade on macro events rather than fundamentals
>Commodity producers likely to do well

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First published: Wednesday, May 11, 2022. 07:00 IST

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