Bruno Verstraete of Lakefield Partners in an interview with CNBC-TV18 said he believes markets are already looking beyond the COVID crisis.

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“They are already placing their bets on the recovery of the economy and also looking into the cyclical stocks which will benefit much more than the defensive stocks,” he said.

He believes at this stage markets are a bit stretched.

In terms of Georgia run-off elections, he said, “I don’t think we should be too worried but it will definitely cause yet another rotation into sectors that will benefit from that. I think the balance of it is not that bad because stimulus will go up, taxation will be down but if we put everything in that scale, I think the difference is not going to be that much.”

On stocks, he said, “Within the stocks, my preference at this stage would clearly go into the smaller stocks and into cyclical stocks because they still have some way to go.”

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(Edited by : Bivekananda Biswas)