The probability of stagflation worries mkts: Valentis Advisors MD Jaipuria

Markets have come off sharply this year amid the US Federal Reserve’s (Fed’s) decision to shrink its balance sheet. Pressing ahead, returns will be driven by earnings growth rather than a valuation rerating, says JYOTIVARDHAN JAIPURIA, founder and managing director, Valentis Advisors. In conversation with Sundar Sethuraman, he says foreign flows may move to some of the under-performing markets within the emerging markets (EMs). Edited excerpts:

How will a tighter monetary regime impact equity markets?

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