The US Presidential elections won’t have much impact on the Indian markets, Shankar Sharma of First Global said on Thursday. In an interview to CNBC TV 18 he said, “No, I don’t think our markets will be bothered much. Whoever wins or loses, how does it matter to us?” Last week, he said that he was not worried about 2-4% market correction after a big run, and also felt that bear market for emerging markets had ended. He was of the view that the market will go through the roof if yields come down to 5%. Stating that there is no correlation between policy rates and inflation in India, Sharma expects the new RBI governor to be hawkish.
Speaking at the Morningstar conference in Mumbai, yesterday, Sharma said that there are 4 easy ways to make Venture Capitalist-type returns in the stock market. He said that 80-90% of investing success is luck. Elaborating on his four mantras, Sharma said, “Firstly, I never wavered from buying trash companies at even cheaper prices. Secondly, a stock must be at multi-year low; look at negative momentum in stock. Thirdly, the stock should be loss-making or near loss-making and fourthly, the stock must be at lowest underweight in its own sector.” Sharma heaped praise on Indusind Bank and Amazon, saying management changes, cash turnaround helped the companies in a big way.
Recently, Marc Faber the author of the The Gloom, Boom & Doom Report, said that Hillary Clinton’s victory may not be positive for the global markets. Calling Hillary Clinton a war monger, Faber says that if she is elected, international tensions will increase. “The belief is that if Trump gets elected then it would be negative for the asset markets, US markets. A Hillary victory would be positive. I am not so sure about this belief because Hillary is basically a neocon and a war monger,” Faber told CNBC TV-18. “She has supported the invasion of a variety of countries already. So her election may lead to more international tensions,” Faber said.