As a part of the ‘Outstanding Women in Finance’ series, CNBC-TV18’s Sonia Shenoy spoke with Rupal Bhansali, CIO-Global Equities at Ariel Investments.
She is the CIO and Portfolio Manager of Ariel's Multi-Billion Dollar Global Equity portfolios. Ariel's investment has a total AUM of over $18 billion. Rupal has among other accolades, been featured on the list of "100 Most Influential Women in Us Finance"
Bhansali has a bearish view for next year. According to her earnings are going to decline next year and multiples will deflate causing major corrections worldwide.
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Bhansali said, “I am quite skeptical of this bull market rally continuing. I think it's actually a classic bear market rally. One should not get seduced by these rallies, which of course, suck a lot of people into the markets again. The fact of the matter is valuations are very rich worldwide. It's not just the earnings multiple, it's a debt multiple, which few people actually care about or think about. But corporate debt worldwide has gone up a lot, including sovereign debt. And deleveraging tends to be very painful, and it causes deflation in the multiples that people are willing to pay.”
She added, “So I am actually quite bearish on global stock markets, but that includes India for 2023. That said, not everything is lost, one can position portfolios, even for a market that's going to go down.”
For the entire discussion, watch the accompanying videoTo watch other videos in this series, click on the Smart Money tab below.