Amer Khan says he could sense a stock market rally in late 2012 just from the street scene in Dubai, the financial capital of the United Arab Emirates. Tourists were once again jostling for a spot from which to watch the dancing fountains that adorn the downtown area. Recurring traffic jams, increasing retail sales and a rise in airport passengers were other signals for Khan, the senior executive officer at Dubai-based Shuaa Asset Management.
HSBC Private Bank is shifting funds to shares in developed nations and cutting holdings of bonds and stocks in emerging markets, predicting asset prices will drop as much as 10 percent as developing nations raise interest rates.
In the past decade, mutual funds poured almost $70 billion into Brazil, Russia, India and China, stocks more than quadrupled gains in the Standard & Poor’s 500 Index and the economies grew four times faster than America’s.
Arjuna Mahendran, who helps manage about $499 billion as head of Asia investment strategy at HSBC Private Bank in Singapore, comments on the outlook for Indian equities in an interview with Bloomberg UTV.
The worst plunge in China’s stocks in more than a year is a buying opportunity for investors as the country’s benchmark index may advance as much as 15 percent by June, according to HSBC Private Bank’s Arjuna Mahendran .
The longest losing streak for developing-market equities in more than a decade is turning investors who shunned the stocks a year ago into buyers after valuations fell to the lowest levels since March 2009.