George Thomas on Quantum AMC's 3 Pillars of Investment Strategy: Banking, IT, and Valuations

George Thomas, Fund Manager at Quantum AMC, is optimistic about the banking sector, especially private banks, and expects IT to outperform in the coming quarters. The AMC holds significant positions in banks and IT, and focuses on large-cap stocks, liquidity, and governance standards in their investment strategy. Consumer discretionary stocks, particularly two-wheelers and durables, also show potential. Investors should be forward-looking, Thomas advises.

George Thomas, fund manager at Quantum AMC, has expressed optimism about the banking sector, particularly private banks, and expects the IT sector to outperform in the coming quarters. The AMC holds significant positions in both sectors and focuses on large-cap stocks, liquidity, and governance standards in their investment strategy. Consumer discretionary stocks, specifically two-wheelers and durables, also show potential, according to Thomas.

Thomas's views align with recent trends in the financial markets. Fund managers predict that emerging-market assets will outperform their developed-market peers due to anticipated Federal Reserve policy easing, a shift away from US investments, and prudent fiscal policies in emerging nations [1]. Favorable inflation and attractive valuations further support this outlook, with analysts forecasting a 15% gain for the MSCI Emerging Markets Index compared to 10% for its developed counterpart.

The banking sector has been boosted by the prospect of more Federal Reserve policy easing and a pivot away from US investments. Private banks, in particular, have seen increased interest from investors. The IT sector has also shown strong growth, driven by technological advancements and increased demand for digital services.

Thomas advises investors to be forward-looking and consider the long-term potential of these sectors. While short-term volatility may occur, the underlying fundamentals of these sectors suggest strong growth opportunities.

References:
[1] https://economictimes.indiatimes.com/markets/stocks/news/em-assets-to-pull-ahead-of-developed-peers/articleshow/123491299.cms