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Wells Fargo finds emerging market prospects favourable, increases India bet

Updated : July 09, 2021 11:38:51 IST

Gary Schlossberg, global strategist at Wells Fargo Investment Institute, on Friday, said that prospects in emerging markets (EM) are quite favourable. Schlossberg also said that he would view India favourably in the emerging markets context.

Speaking in an interview with CNBC-TV18, he said, “We maintain, a somewhat, favourable rating towards emerging markets. We think that world trade growth is still rising at a rapid rate; we are still dealing with supply chain disruption, shortage of chips (semiconductors) and of course the Asian economies are an important driver for the emerging market performance.”

“Therefore, we still think that the prospects in emerging markets are quite favourable; certainly better than neutral and that will begin to show up as we continue to move through 2021. However, it’s early to say if emerging markets have already made highs this year, but we continue to favour the US and we still think that that is the most attractive market and we would view India quite favourably within emerging markets,” said Schlossberg.

On US inflation, he said, “We want to keep our eye on the global economy including the US economy as well. However, some of the numbers have been disappointing for the US; it’s still in the context of strong economic growth that we have been seen, but there have been some soft spots.”

“There are some concerns about the Delta (COVID-19) variant affecting emerging markets growth, there are low vaccinated areas and on top of that, oil prices have been trending higher and inflation has been elevated. So that creates a headwind for purchasing power,” Schlossberg said.

For the entire interview, watch the video.
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