Sunday, December 5, 2021

Julius Baer's Asia-Pacific head on how 2022's shaping up for equities

 Bhaskar Laxminarayan, head of investment management for the Asia Pacific at Julius Baer, shares how the new Covid-variant could possibly change the outlook for global equity markets, including India


1) The way markets have reacted to the Omicron Covid strain, it seems that they know more than the medical experts do. What do you think?

>> Risk from coronavirus is not going away

>> Portfolio construct should be done keeping this risk in mind

2) How do you see 2022 shaping up for equities as an asset class?

>> The coming decade belongs to equities

>> Equities will outperform the fixed income universe in the next 10 years

>> The US, India, and China are the main hotspots where growth has been strong

>> Indian equities a long-term story; valuations have always been rich

>> Do not base investment decisions solely on valuations

3) How are the FIIs looking at India as an investment destination?

>> India is still a marginal allocation for FIIs

>> China has been a predominant bet

>> Local investors participating in Indian markets is good; wealth generation opportunity

4) How do you see corporate earnings play out?

>> 2021 will have a big base year effect for 2022

>> 2021 is the biggest ‘beat year’ for corporate earnings across the world

>> Do not see negative earnings growth

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