Don't get complacent about momentum and valuations: Kenneth Andrade

Earnings will come back but that does not always mean stock valuations will go up, says Founder & Chief Investment Officer, Old Bridge Capital

Liquidity also has its cycles and there could be reversal in foreign flows if bond yields continue to rise, warns Kenneth Andrade, Founder & Chief Investment Officer, Old Bridge Capital Management. In an interview with Samie Modak, Andrade spells challenges in playing the ‘value’ theme. Edited excerpts:

What are your views on valuations and corporate earnings?

Earnings growth is reverting to mean. This is a good thing as it does provide a lot of cash flow to corporates to restructure their business operations. So rather than looking at earnings growth we should look at how profitability improves financial health of the