Brian Singer, head of dynamic allocation strategies at William Blair and Company, spoke to CNBC-TV18 about the market sentiment.

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“We are cautious I should say but at this point not extremely bearish,” Blair said.

He prefers emerging markets (EMs) versus developed markets. “From US perspective, emerging and it is the equity markets and the currencies,” said Singer.

In terms of the pecking order within EMs, Blair said, “There are supply chain issues that everybody talks about, there are direct trade issues that everybody talks about. Most of those are focused more in Asia - a lot of it is associated with US and China - but there are opportunities elsewhere in the EMs too.”

On India, Blair said, “We do have a long position in India. We have recently trimmed the position a little bit but we still look at it as one of the better among the EMs.”

“In case of China, I believe they are very thoughtful in picking the level of the currency and I think they wanted to signal by moving it and slowly move it but try to keep the market being a little bit weaker than they move their fixing each day. That way they don’t prompt too much of a market reaction,” Singer added.

“We want to ride the tide. The difficulty is the waves are pretty large these days and we have to navigate the waves. We will have to be in and out as this goes on not because we are turning significantly bearish or significantly bullish, we want to maintain the position overtime as a long position but we have realised we have to increase and reduce it as developments occur. We may reduce it more, we may increase it more even between now and then,” he said.