Shankar Sharma, the Vice Chairman & Joint MD of First Global spoke to CNBC-TV18 about how equity participants globally are ‘overfed, fat & complacent’ with strong returns over the last 12 months.

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Sharma said, “The trouble in markets is that when we all become fat, complacent, over-fed on easy profits that is the time when the markets surprises. Right now we are all fattened by easy profits for the last 8-2 months’ time. We are all fattened by ultra-cheap interest rates, low inflation, we are all fattened by the belief that the Fed is god.”

“I worry about these things when I see so much consensus and so much over-fed people, fat people skating on thin ice I have a problem with that. Which is all I am saying, I am not saying the ice will crack, all I am saying is if I am skating on that thin ice, I want to be very thin I don’t want to be fat.”

Sharma added, “The markets are going to be worrying about inflation if not now I think in the very near-term.”

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Also read: Have been long on oil and commodities since March 2020: First Global’s Shankar Sharma

(Edited by : Abhishek Jha)

First Published:Mar 2, 2021 1:36 PM IST