Monitoring inflation in US & Indian market; going for largecaps in India: Hartmut Issel
Hartmut Issel, Head Equity & Credit APAC, CIO WM, UBS Wealth Management, says they would steer more towards the largecap side. Valuation growth, risk reward look better on this level. Within sectors, consumers at zero growth is a very clear opportunity. Financials also, especially banks, provide opportunity as they have been a bit of a laggard for the longest time. They may stay away from the two-wheeler space as many of these companies have just peaked in terms of revenue or earnings momentum and that is probably going to be a multi-quarter trajectory.
What should we expect from equities and what should we expect from developed market equities, emerging market equities, and bonds in the next 12-18 months? Which one is your preferred asset class?
Hartmut Issel: Right now, it is a bit hard. We like bonds and equities and in a portfolio also, we still have ongoing uncertainties and we will probably get tariffs and all these issues. I would really say let us not only choose one, but we can certainly have these two and as a hedge to the downside. Also gold is quite attractive right now and has consolidated a bit. So, there is another 10 percentage points upside here. So, let us bring different asset classes together.
But if I had to ask you about the risks on the horizon, what are those major monitorable that you are watching out right now that might derail the story a bit – be it in India or the US?
Hartmut Issel: I would say probably in both cases, India and the US, one of the things that we are watching is
