We are neutral on equities for next six months, says Rajesh Saluja

Disruptions related to the goods and services tax are settling and overall demand is picking up

Indian equities might not see much gain in 2018, given various headwinds and the coming state and general elections. RAJESH SALUJA, managing director and chief executive officer, ASK Wealth Advisors, in conversation with Vishal Chhabria, says from a three- to five-year horizon, he would advise clients to use volatility as a friend and increase allocation to equities. He believes as earnings catch up, stocks will get re-rated and that's what investors should look at. Edited excerpts:

The markets recently saw a sharp swing. The macros have deteriorated. How much worse could it get?

Two aspects need to be considered. One