“There can be a very small, diverse share of the cryptocurrency portfolio if you have the risk tolerance,” Gary Schlossberg, global strategist, Wells Fargo Investment Institute, said in an interview with CNBC-TV18.
As the economic cycle matures in the stock market, he mentioned that he is focusing on the quality of large caps.
“Higher interest rates will affect the tech industry as much as we’ve seen over the past couple of days, but we’re not looking for a sharp increase in interest rates. Profit growth, as strong as we anticipate, should serve the technology sectors well, ”he said.
According to Schlossberg, the economy is certainly providing favorable winds in India.
“India has a strong growth rate. We are looking for growth in the 9-10% area for FY 2022 and a growth rate north of 7% maybe for FY 2023. The big risk for the overseas market right now is that interest rate hike and the dollar rise with it, “he said.
The rate hike will not be so dramatic, it will be more gradual, he noted.
“In general, we are a little more cautious in foreign markets, maybe neutral towards emerging markets (EM) in general. We do not choose from developing countries or emerging countries. When you look at the savings, there is a big disparity in performance that emerges. Overall, the global economy will experience less synchronized growth over the next 12 months and this also applies to emerging markets, and India is among the best performing countries, ”he said.
According to him, whether one is a country allocator or an investor looking country by country, India – the earnings outlook supported by strong economic growth, will be a desirable enough area to park funds.
He believes the dollar’s rise will be more gradual, peaking at the end of next year, and that should alleviate some of the pressure in those foreign markets, certainly for US investors.
Asset strategists are looking for a price target of around $ 90 a barrel for oil over the next six to nine months.
“The Organization of the Petroleum Exporting Countries (OPEC) is playing the market very well, very cautious and a measured increase in production commensurate with the moderate growth in the world economy that we expected to see. Europe will go through a very difficult time over the next six months, ”Schlossberg said.
“We don’t see OPEC Plus stepping in with both feet and speeding up production. They are very measured, very disciplined and this combination provides that underlying tension in the market that will persist for most of 2022, ”he said.
For the full interview, watch the accompanying video.
(Edited by : Dipikka Ghosh)