After a sharp run-up in the mid-cap and small-cap stocks thus far in 2017, Hong Kong-based Mark Matthews, head of research for Asia, Julius Baer Group, tells Puneet Wadhwa he would steer clear of these two segments for now. Edited excerpts:
Has the market reaction to the rating rejig by Moody’s been overdone?
There is no correlation between rating changes and the stock market. Rating agencies have checklists for economic and corporate health that are more coincidental than leading. They tend to react to events that have already happened. The rating agency action is not followed by stock market reaction, as most
