Equity markets are headed towards a bear phase: Mark Matthews, Julius Baer

Q1: With the US Federal Reserve and the RBI making their intent clear, how do you see global equity markets play out in the rest of 2022?
Ans:
>They’ll be choppy; many moving parts in the markets
>Aura of uncertainty hanging over markets
>More chances of downside than an upswing


Q2: So are you a buyer on dips or a seller on a rise?
Ans:
>Buyers need to be nimble
>Outlook is uncertain; do not advise people engage in active trading
 
 
Q3: Is the global equity market headed towards a bear phase and give negative returns in 2022?
And:
>Possible that equities are headed towards a bear phase
>Market trajectory has taken a U-turn
>Overall direction does not look positive
 
 
Q4: Where does India stand in your pecking order? Which other regions look more lucrative?
Ans:
>India has outperformed most regions YTD
>Domestic investors continue to buy stocks; untapped potential
>Rising oil a headwind for the Indian economy
>Earnings growth in FY23 will come from sectors not dependent on commodity prices
>Indian equities to perform in-line with global peers
 
 
Q6: Inflation fears have been known since quite some time now, but the selling over the past few days and weeks have been brutal. Has the sell-off been overdone?
Ans:
>Markets have surprised over the past few weeks
>Assuming we’re in a bear phase, three-fourths of the pain is over
>US Fed tightening expectations will prove to be exaggerated
>Signs that economic growth is starting to slow; will help in cooling inflation
 
 
Q7: Investment-worthy stocks and sectors in the Indian context?
Ans:
>Stocks not overheated; global cues in focus
>Markets trading on macro events rather than fundamentals
>Commodity producers likely to do well