Hiren Ved, CIO of Alchemy Capital Management said that valuations will look higher for capital goods stocks during an upcycle, but an investor can still benefit if they are looking at a long term perspective.
US bond yields have reached the highest level since 2007. Interestingly, in a break from tradition, gold and crude prices are also rising along with the yields, thanks to the global geopolitical uncertainties.
Markets are positively positioned with strong macro growth and corporate earnings growth, plus valuations, though above average, are not overstretched, says Alok Agarwal of Alchemy Capital.
“There are still opportunities in a lot of areas. Specialty chemicals, agri, IT services or tech have not moved as aggressively as what the industrials have done from a risk-reward perspective and there are opportunities. But the message is that if you are invested even in some of the leading sectors like industrials, capital goods and power, you should remain invested in those sectors."