Emerging markets may do better in 2012: Prateek Agarwal

In a chat with ET Now, Prateek Agarwal, CIO, ASK Investment Managers, shares his views about global outlook.

For the year 2012 do you think at a global level dollar denominated assets will outperform or emerging markets somewhere in 2012 will make a come back?

As of now valuations across the board are pretty cheap in the emerging markets. Most emerging markets are trading lower than the averages they have traded in the past. India itself is trading only 10% higher than the 2008 valuation levels. So on valuations EMs should end up doing better. The main catches whether the risk on attitude comes back to the market, it could because in last year in December people were really worried about what may happen in the US and most of the time used to be spent on that. US actually has delivered a flat year with an outlook today which is more positive than negative. If something similar happens to the Eurozone also and a risk on kind of an attitude develops, clearly EMs as an asset class should end up doing much better in 2012.