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DEEPAK JASANI, head of retail research at HDFC Securities tells
Saloni Goel in an interview that instead of falling for the name trap, investors must look for individual stocks whose prices are yet to reflect their growth potential fully. Edited excerpts:
The debate between growth and value stocks has rekindled. Which side are you leaning? Value stocks generally come back in favour when the economy or corporate revenue/profit growth slows down, while growth stocks remain in favour when the risk appetite globally is high. Hence, the fund flows into these stocks increase leading to their rerating. At times, however, both of these are in demand. This happens especially when the economy is rebounding from the low levels.
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In May 2013, bond investors threw a tantrum after hints the U.S. Federal Reserve might slow the money-printing presses. A similar selloff now, with another $70 trillion added to global debt, could prove to be far more vicious. A 2013-style "taper tantrum" was named as one of the top market risks in BofA's February poll of fund managers who fear a pick-up in inflation expectations might soon persuade central banks to start withdrawing or "tapering" stimulus.