homemarket NewsAsian markets, including India, don't need to worry about rising rates as much: Dan Fineman
Asian markets, including India, don't need to worry about rising rates as much: Dan Fineman
Dan Fineman's comments provide valuable insights into the current economic climate and the impact of interest rates. While Asia may be less vulnerable to higher rates, the global economy will still feel the effects. Investors should remain cautious and consider diversifying their portfolios to include emerging markets, which may offer better opportunities in the current climate.
US Federal Chair Jerome Powell's recent comments on upcoming rate action show that rate hikes are here to stay and this has resulted in recession fears rising. Market watchers believe that comparatively, Asian markets like Taiwan, China and India, may be relatively insulated from rising interest rates but there are still risks that investors should be aware of.
According to Dan Fineman, the Co-Head of Equity Strategy-Asia Pacific at Credit Suisse, there is no need to worry about interest rates as much in Asia. This is because banks in the region have not exposed themselves as much to the impact of higher rates.
“In Asia, we don’t need to worry about this as much. The rate increases haven’t been as steep, the banks have not overly exposed themselves,” he said.
Despite this, Fineman warns that there is no escape from the impact of higher rates. While Asia may be less vulnerable to interest rate hikes, the global economy as a whole will still feel the effects.
“Globally we are cautious and we have been concerned about the rally we had earlier in the year, we had viewed it as a bear market rally,” he said.
Fineman believes that the worst lies ahead for the developed market economies.
"We don’t think that we will have a soft landing, we are still expecting a recession,” he added.
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Fineman suggests that emerging markets will fare better than the US in the current climate. “Emerging markets will do better than the US. EMs should be a place investors should be looking at now,” he said.
As such, investors should consider diversifying their portfolios and looking beyond the US for opportunities, he added.
Also Read | Home loan rates hike: Experts answer if borrowers should wait for RBI to hit pause button
It is important to note that the economic climate is constantly changing, and investors should always stay informed and up-to-date on the latest trends and developments. While Fineman's insights are valuable, it is ultimately up to each individual investor to determine the best course of action for their own portfolios.
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