India is Asia's best post-Covid recovery story: Chris Wood
Published On: Friday, February 12, 2021 | By: Team KnowMyStock
Christopher Wood, global head of equity strategy at Jefferies has reiterated his bullish view on Indian equities due to a steady fall in Covid cases coupled with a sharp economic recovery in India. In December 2020, Wood raised exposure to Indian equities twice in his Asia ex-Japan long-only portfolio. “With Covid cases in India now 88 percent off their peak amid growing hopes of herd immunity, India looks right now Asia’s best post-Covid recovery story,” Wood wrote in his weekly note to investors, GREED & fear. For the stock market to have a real nasty unwind at the global level rather than just a bull market correction, Wood believes there needs to be a catalyst in the form of an economic downturn or a material tightening in the US Federal Reserve's (US Fed) policy. He ruled out the possibility of either of these catalysts materialising.
“The risks are building for obviously overvalued US equities, and in particularly high PE growth stocks. But before those risks become reality Treasury bonds have to sell off more and cyclical stocks to rally more,” Wood said.
Tags: Chris Wood Markets Coronavirus
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