Indians investing in US equities should avoid bubbles, fads: Rob Arnott

"I wish fiscal and monetary "stimulus" weren't called "stimulus". It doesn't stimulate anything; it transfers wealth from future spending to today," says Arnott

Market rallies around the world are divorced from economic reality, says Rob Arnott, partner, Chairman of the Board of Research Affiliates. Arnott, who spoke recently at CFA Society India's 5th India Wealth Management Conference, tells Business Standard that several tech stocks in the US are trading at valuations as rich as the peak of the tech bubble and that nearly $2 trillion of the $3 trillion Fed stimulus may have been wasted. Arnott is bullish on emerging market stocks and bonds which, he says, are currently "unloved". Edited excerpts:

Q. Technology stocks have led the market rally in the US