The recent gyrations of Indian small caps should not detract from the country’s equities longer term appeal.
For two years Europe's small caps have been lagging blue chips, despite good earnings and very low valuations. This might change in 2024.
In theory, quality investing makes a lot of sense in an uncertain world. In practice, it takes a great deal of skill and effort.
India’s structural strengths – demography and democracy – are well known. Business-friendly politics, a thriving service sector and geopolitics add to the positive picture.
With its diverse strengths, Asia remains a global growth driver in our view. It is worth taking a look at the entire region, not least as a potential counterweight to the dominance of U.S. equities.
Compared to bonds, U.S. equities are as overvalued as they were in 2003 and 2009. Back then, both asset classes were cheap. Hard to argue that this is the case again today.
