Arvind Sanger: Avoid FOMO, be patient with midcaps

Arvind Sanger, Managing Partner at Geosphere Capital Management, advises investors against hastily entering the market, suggesting patience, especially with midcaps and smallcaps, due to the high valuations.

Sanger said the Red Sea attacks has resulted in a rise in crude prices and freight rates. These developments might slow down the anticipated decline in inflation, causing market unease. While previously predicting a US recession in 2023, Sanger now adopts a more cautious stance, closely monitoring inflation trends to determine their impact on future rate cuts.

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Sanger prefers high-quality names in the financials sector with strong fundamentals. He noted that the information technology (IT) sector, which experienced a sharp sell-off, is now on Geosphere Capital's radar, particularly if it undergoes further correction.

Sanger is also interested in exploring old economy stocks, including the metal sector, which faced challenges due to a dollar rally. He said opportunities may arise in metals if prices become attractive.

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