Equity market won't be able to hold up if we see hints of recession: Richard Harris

“If we are seeing the hints of recession further down the line because the inflation is too high then, of course, the equity markets won’t be able to hold up,” said Richard Harris, Chief Executive at Port Shelter Investment Management in an interview with CNBC-TV18.

Markets have done quite well, which may be going back to the old adage that sometimes war isn’t so bad for equity markets, he said.

Global signal: Inflation and Fed tightening expectations at the forefront

It has been a month since the Russia-Ukraine war started. It now seems to be approaching a stalemate situation. As that happens, as there are no surprises, markets will start looking at more fundamentals, where liquidity was driving markets, where positivism is driving markets, where the markets were recovering from COVID-19, he said.

He believes the market is probably betting on some kind of ceasefire coming through.