Bhaskar Laxminarayan, head of investment management for 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 is 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 decision 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
5) What should an ideal portfolio construct be for investors to tackle opportunities and risks that lie ahead in 2022? >> Equites: Around 52 – 55 per cent; Bonds: 35 per cent; Alternate assets: 10 per cent; and some cash
>> For someone with average risk profile, equities is the best place to be
 "Julius Baer's Asia-Pacific head on how 2022's shaping up for equities")
