The Capital Cycle Podcast China vs. India
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Sep 30, 2024 In this enlightening discussion, Alex Duffy, Portfolio Manager for Emerging Markets at Marathon Asset Management, shares his insights into the divergent landscapes of China and India. They delve into India's booming retail investor base and the robust performance of mid-cap stocks. Duffy warns about potential market risks in India and emphasizes careful investment strategies. In contrast, he highlights China's struggles with oversupply and stagnant returns, urging investors to prioritize corporate governance and well-managed companies for future opportunities.
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Rejecting Value and Growth Labels
- Marathon Asset Management rejects traditional value and growth labels.
- They prioritize sustainable return profiles and intrinsic value creation through efficient capital allocation.
GDP Growth vs. Stock Returns
- High GDP growth does not guarantee high stock market returns.
- This is often overlooked when evaluating investment prospects.
India's Speculative Blow-Off
- India's high valuations are not necessarily a sell signal, but rising retail participation and insider selling raise concerns.
- Increased speculative activity in mid-caps and small-caps further adds to the cautionary signals.