Reflections of a US trip

There is positive sentiment for India, but in the short-term foreign selling will continue

I had the opportunity to spend a couple of weeks in the US recently. While there on a family trip I had the chance to speak to a cross-section of market players: Asset allocators, hedge funds, long-only investors and long-term institutional capital providers. Every meeting had its own unique pattern, but there were two-three themes that came up in every interaction.

Firstly, all the really smart investors were incredibly cautious. Everybody thought the recent stability and uplift in markets was a dead cat bounce. Everyone talked about how in all the significant multi-year market breakdowns, you had two-three bear market bounces