homemarket NewsStandard Chartered says yields close to topping out, prefers bonds to equities in near term
Standard Chartered says yields close to topping out, prefers bonds to equities in near term
Rajat Bhattacharya, Senior Investment Strategist at Standard Chartered prefers bonds over equities in the near term. However, for long term investors, equities are better as India stands out among emerging markets.
Rajat Bhattacharya, Senior Investment Strategist at Standard Chartered sees bonds as a better investment bet in the near term globally versus equities.
He believes US bond yields have topped out and the upside is likely to be capped at around 5%. The US 10-year treasury yield has crossed 4.8%, hitting 16-year highs.
"We are expecting a global economic slowdown led by developed economies next year...yields will come off," he said.
While any escalations in the Israel-Hamas conflict need to be closely watched, he highlighted that historically, such geopolitical conflicts from the Middle East have not led to a lasting impact on oil prices.
Crude oil prices have surged by nearly 6% in the past ten days since the start of the Israel-Hamas conflict. Analysts back home are cautious, closely monitoring the situation.
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For long-term investors, equities remain the better bet, he said, explaining that India's nominal growth stands at around 12% and earnings growth has historically tracked nominal GDP growth over several decades. He expects that to extend over the next 3-5 years, so valuations don't look too expensive.
For more details, watch the accompanying video
(Edited by : Shweta Mungre)
First Published: Oct 18, 2023 11:14 AM IST
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