HANS GOETTI - Expect QE3 before expiry of Operation Twist

BSE Index Analysis, Securties , Standard Experts



HANS GOETTI, Chief Investment Officer, Finaport 

HANS GOETTI, Chief Investment Officer, Finaport  

Source: CNBC 

Expect QE3 before expiry of Operation Twist

Third round of quantitative easing can be expected before the Operation Twist expires on June 30.

This being an election year in the United States, we think that the Fed might be tempted to come up with another liquidity programme, especially when the economy slows down.

Global markets are correctly experiencing a correction phase due to weak economic data world over, but Goetti says things will pick up once again in Q4.

If you look at 2010 and 2011, we had a very similar development in the equity markets. A strong Q1 followed by weak Q2 and Q3 and then a very strong Q4; this year seems to be shaping up in a very similar way.

So what we are bullish on still are bonds because we have deflationary tendencies in the economy. Anything that has a yield of greater than 4%, that is high yield bonds and high yield stocks, will be a theme.

Talking specifically about the India, Goetti says the market is near its bottom so it looks like a buy right now.