Meanwhile, Greenberg is increasingly less bullish on India than many other EM investors, recently reducing his 8% overweight to 5.5%.
Despite the positive election result and increasing amount of positive regulatory reform, he finds the market “a little bit expensive” and he doesn’t expect to see growth in India’s industrial sectors picking up anytime soon.
“The Indian election victory was positive,” he said.
The big negative on India is that the banking system is chock full of bad loans and they haven’t come up with a means of reforming that, though, they probably will.
“Once that does happen, the economy can start its up cycle, as far as the industrial economy goes. Until that happens, it’s dead in the water.
“We think there are some very interesting stocks in India, but we don’t see the industrial cycle resuming in the next six months and we’re not sure when it will. At this stage, investing in the region is more of a stock picking scenario.”
