So US has patched up some kind of an agreement over the fiscal cliff, and market expectedly jumped all over. Now as investors pour over the details of the deal, they will realize nothing much has actually happened.
They have increased the tax rates for super rich, and made permanent the tax rebates for everyone else. In the times of crisis, everyone must be ready to make sacrifices, but for some reasons none of the elected representatives around the world seem to be in a hurry for it. There is a big vaccum of leaders with spine and vision.
Anyways, back to the markets which seems to be flush with liquidity. I expect China to be the talk of the town for most part of Q1, and see more and more people jumping on the story. As for India, am not too optimistic for this year - think it would lag other regional markets this year. Only Metals and IT seem to be offering some values at these levels, most other sectors look over stretched.
Let me track Nifty, CNXIT and SHCOMP over the next three months, from January 7th to March 31. I would tend to think SHCOMP would outperform, followed by CNXIT, and Nifty to underperform.
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