economy | IST

Investors waiting for macroeconomic data to bottom out before investing in India, says Port Shelter’s Richard Harris

US job growth continued at a tepid pace in August, with nonfarm payrolls increasing by just 130,000, the Labor Department reported Friday. Richard Harris, chief executive at Port Shelter Investment Management, spoke to CNBC-TV18 about the data and global markets.

US job growth continued at a tepid pace in August, with nonfarm payrolls increasing by just 130,000, the Labor Department reported Friday. Richard Harris, chief executive at Port Shelter Investment Management, spoke to CNBC-TV18 about the data and global markets.
“The jobs report were not good; it got a very end of cycle feeling whereby in the US market we do now signs of the economy slowing down,” said Harris.
“However, it’s just a general cyclical slowdown and talking even of 50 bps rate cut so the macroeconomic picture doesn’t look that good, but people are still hanging there and believe that the consumer still looks strong and the US economy isn’t piling into recession straightaway,” he added.
According to Harris, "We are in a situation where the markets are happy to take on a little bit of good news but the overall picture does look more on the downside bias than the upside bias.”
Talking about the Asian markets, he said, “The Asian markets are not going to benefit if we have a slowdown elsewhere in the world.”
He further said that the Chinese authorities pushing liquidity into the system to offset the impact of the export slowdown.
About India, he said, “I am not too concerned about India because India had a strong period of outperformance over the last couple of years when other Asian markets were doing somewhat weaker.”
“It was probably time we have some sort of pullback and we have had a bit of macro news out of India which to foreign investors has been mixed and that hasn’t been necessarily positive in terms of investing. Therefore, we should still look at these things as a cyclical factor or cyclical approach,” he added.
According to him, investors waiting for macroeconomic data to bottom before investing in India.