'Commodities are the best place to be right now'

Q: What is your interpretation of how the recent geopolitical situation has unfolded and the way markets have reacted to it?
Ans:

• >Markets do not like war, which happened at a time when they were on an upswing
• >Worried central banks may not hike rates aggressively
• >Markets can rebound as a result later this year – may be the last rally

 
 
Q: How much downside do you see from the current levels?

• >Panic situations like these usually mean that the bottom is near
• >Markets should bottom out in the next few days, followed by a rally

 
 
Q: How do the investors navigate this uncertain phase for the markets?

• >Invest in asset classes that you know; stay in your comfort zone
• >I own sliver and agriculture, and look to buy more of it

 
 
Q: So, which commodities are you looking to buy more of – gold, silver, oil, metals?
And:

• Invested in silver and gold; will buy more on a correction
• Will buy more of agriculture commodities than anything
• Demand for lithium, copper and lead to go up due to electric cars

 

Q: Do you think then the global central banks will not hike aggressively as envisaged earlier?

• US Fed’s rate stance has led to inflation
• More inflation is going to lead to higher interest rates
• Central banks will lose control, will lead the markets into a ‘bear phase’

 

How do the emerging markets look in this backdrop?

• Emerging markets aligned to commodities will benefit
• Own Russian shares and will buy more once this geopolitical crisis eases

 
 
Q: What are your views on the Indian markets?
And:

• Indian equities have been strong; don’t like buying any market that strong
• Will buy Indian stocks on a correction
• RBI has supplied enough money and Indian equity markets can continue to be strong
• Do not own any Indian stocks right now

 
 
Q: Which other asset classes and equity markets do you find expensive?
Ans:

• Bonds in bubble territory and so is property/ real estate in New Zealand, India and South Korea
• Some stocks are also in bubble zone
• Silver, agri-commodities are some asset classes not in a bubble zone
• Commodities are the best place to be right now

 
 
Q: What’s your advice to investors to equity market investors right now?
Ans:

• Geopolitical crisis are an opportunity to buy
• Commodities are likely to do well
• Buy what you know best

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