CNBC Stock Blog

Be Long US Banks vs. Emerging Markets: Equity Strategist

With the rise in emerging markets, should investors be going global? Binky Chadha, chief U.S. equity strategist at Deutsche Bank, shared his market strategy.

The Friday Trade

“We are overweight U.S. equities versus emerging markets,” Chadha told CNBC.

Chadha said while emerging markets have outperformed the U.S. markets in the last six to seven years, about two-thirds of that have come from relative multiple expansion and currency relationships, rather than growth.

“If you look at forward-looking high frequency indicators, or new orders relative to PMI, the U.S. is actually doing better than China,” he said. “So be long U.S. financials relative to emerging market financials.”


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No immediate information was available for Chadha or his firm.