According to Dr. Vikas Gupta, CEO and Chief Investment Strategist at OmniScience Capital, the S&P 500’s forward price-to-earnings multiple of around 21 translates into an earnings yield of approximately 5%.
“This combined with estimated growth rates of nearly 9%-10% in terms of revenues and earnings makes it quite an attractive market for Indian investors,” said Gupta.
He added that exposure to high-growth themes such as artificial intelligence (AI), along with US dollar-denominated assets, offers diversification benefits and serves as a hedge against potential rupee depreciation.