The market is more likely to melt up than melt down: Stephen Dover

Monetary easing, strong earnings, and capital investment will drive markets higher, with India and other emerging markets set to benefit, says Dover

Monetary easing, robust earnings, and rising capital investment will fire up market momentum, says Stephen Dover, chief market strategist and head of Franklin Templeton Institute. In an interview with Samie Modak and Sundar Sethuraman in Mumbai, Dover — a value investor — observed that while losing money is a risk, missing out on potential gains can be costlier. Edited excerpts: 

Global markets have done exceptionally well this year despite trade war and geopolitical concerns. What has underpinned these gains? 

Primarily earnings, especially from the Magnificent 7 stocks. Over time, equity markets follow earnings, and this year we’ve seen an unprecedented