Politics is replacing actions expected of central banks, says CLSA’s Chris Wood

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June 29, 2018 4:19 PM

As politics is taking center stage all across the world, political developments are replacing action expected from the central banks, a renowned global investor said.

Meanwhile, earlier this month, Chris Wood had said that as affordability in real estate sector remains at the best level in 15 years.

As politics is taking center stage all across the world, political developments are replacing action expected from the central banks, a renowned global investor said. Christopher Wood, managing director, equity strategist at CLSA also told ET Now that trade war concerns between the US and China have grown on trade wars in the markets. However, he doesn’t expect the trade war to go too far, he said. Global economic growth could slow down by 1 percentage point — or more than a quarter of the expansion rates projected by various international bodies — if US President Donald Trump’s tariff threats against China and others escalate into a full-blown trade war, S&P Global’s chief economist cautioned earlier this month.

Meanwhile, earlier this month, Chris Wood had said that as affordability in real estate sector remains at the best level in 15 years, there is a possibility that high networth individuals may sell their holding in equities and invest in real estate instead, raising risks for the markets. The Indian investors can now invest in the real estate sector, advised Christopher Wood, said GREED & fear, a weekly note by Chris Wood, managing director, equity strategist at CLSA.

“One risk for Indian equities is that high net worth investors sell stocks to purchase real estate as evidence grows that the residential property cycle has turned up. This would be a negative caused by a positive. GREED & fear again recommends investors to buy into the Indian property sector if they have not already done so.

Affordability remains at the best level in 15 years while developers’ pre-sales are rising,” said Chris Wood. Sharing his plans for Asia portfolio (without Japan), Chris Wood also said that he plans to hike his existent investments in HDFC Bank and Indiabulls Ventures.

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