Manpreet Gill, Senior Investment Strategist, Standard Chartered Bank, on Friday, said that he expects volatility to return to the market after being absent for almost 1.5 years. Additionally, he expects US equities to outperform.

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He said, “Volatility was entirely absent over the past year-and-a-half. As we return to a more normal economic and market environment, volatility is something we should expect, but that’s not something which alters our view that we still expect equities and technology sector in the US to outperform.”

According to him, the Indian market has co-related with the US market over the last few weeks. Gill noted that a new US Fed rate cycle is starting in 2022. Gill added that what one needs to watch out for is whether the dollar will be strengthening more than what has been priced in.

Also Read: Don’t see drastic shift in US Fed’s policy; expect dollar to peak in H1 of 2022: Standard Chartered

He said, “As Fed cycle is priced in, the big question for us is whether the dollar has room to get stronger if you do think in the very short-term or whether at the point where it gets priced in and that’s where the dollar may start to turn and that’s where the question whether equity performance will still be led by the US or we start looking outside the US and to emerging markets – that’s what we will be watching when we go through the year.”

Watch the video for the full interview.

(Edited by : Dipikka Ghosh)

First Published:Jan 21, 2022 10:28 AM IST