In a series of meetings with investors this week, Jefferies’ research report GREED & Fear found little counter-argument to its positive view of Asia and emerging markets, with most discussion focused on the relative attractiveness of different markets. focused on tactical issues.
“While it is widely recognized that India remains tactically at risk due to the need to fund increased positions in China, India remains the top performer in the Asian and emerging market landscape. It is widely agreed that this is the long-term equity story.To address this conundrum, investors should reduce their exposure to high PE Indian consumer discretionary stocks rather than reduce their core bank holdings. This makes sense for Greed and Fear, especially since Indian banks look undervalued compared to the Indian market.
Meanwhile, GREED & Fear further said it plans to make some adjustments to its portfolio. “Investing in
In India, the long-only portfolio will be removed and replaced with a 6% weighted investment. By reducing our investment in 1 point, we increase our investment in 1 point,” said broker Jefferies.
The Jeffreys Note also says gold bars are year-to-date and there is growing evidence that expectations of monetary tightening in the US have peaked. The gold movement, which has risen 6.5% year-to-date and has risen 20.3% since last year’s low reached in late September, has yet to trigger new inflows into gold ETFs. In fact, according to the World Gold Council, global gold ETF holdings have fallen by 16.2 tonnes so far this month to 3,456.3 tonnes as of 20th January.
“The absence of inflows is a near-term risk following the outflows that hit gold ETFs last year. Another risk is that the base effect will cause inflation to collapse in the first half of this year, so real interest rates will rise in the short term if the Fed continues to raise rates or even stays on hold.” said the brokerage firm.
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