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Underweight India compared to other emerging markets: Fisher Investments

Updated : November 12, 2020 05:54 PM IST

As funds appear to be flowing from growth stocks to value stocks or from stay at home stocks to economy stocks, will this move last? CNBC-TV18’s Latha Venkatesh spoke to Kenneth Fisher, Founder and Chairman of Fisher Investments.

“I believe we are basically in a longer period where this new bull market is acting like an extension of an old bull market and normally at later phase all bull markets are led by big and growth companies; in particular the growth kind of companies that have been leading most of the year,” Fisher said.

Specifically on India, Fisher said, ““When you look at India as a country, if you patch together EM and US smallcap value market, they are almost perfect image over the last month, three months, six months, 12months of the Indian market and that correlation is at 98 percent. So that is saying that India is partly EM and it is partly smallcap like US market value.”

He added, “As we are a little underweight on value, we are going to be optimistic about India but a little underweight compared to some of the other parts of emerging markets.”

Fisher said he wouldn’t bet too much on growth companies, people should diversify.

“This is a counter trend value rally within a broader growth tendency and the rally is predicated on the notion of vaccine, therapeutics, and COVID is going to be over and all of those things which we have read so often,” he said.

Watch this video for more.
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