Buy on dips, money will flow into risk assets: Harsh Agarwal, Deutsche Bank
In a chat with ET Now, Harsh Agarwal, Deutsche Bank, says even if you do see a Fed rate hike in September, they are likely keep December on the table as well. Edited excerpts
The easy thing is that there has been a bit of dollar strength post-Fed Chair Yellen’s comments. It will last probably for a couple of sessions. The key is what came out of the Jackson Hole event, that over the course of the next 12 to 24 months, there will be a period of gradual ra ..
Harsh Agarwal: At Deutsche Bank, we generally remain fairly constructive on the US dollar. The view as you said for us is that the rates would keep increasing in the US slowly and gradually.
We are not forecasting a rate hike in September for example. We are still forecasting the first rate hike in December.
I do agree that the dollar strength should continue at a gradual pace over the next 6 to 12 months and then I guess the feed in question is what does that do to.
Harsh Agarwal: There are a few things to highlight here. One is personally I do not think even if Fed hikes in September, they are going to come out and say that we are done for the next six or nine months.
I think even if you do see a hike in September, they are likely keep December on the table as well and make it very contingent on how the data comes out correct, that is one.
You are running into two very big events at the end of September, not just the FOMC and the Fed but we also have the OPEC meeting and OPEC has been talking about the potential supply of cursor oil and that has helped the oil rally.
I mean OPEC has disappointed in the past couple of times. So again the OPEC meeting is equally important as the Fed to watch in the end of September. I do think there will be a bit of wobble in the markets.