NEW YORK ( TheStreet) -- While the macro environment is becoming harder and harder to navigate, Customers Bancorp's (CUBI) CEO Jay Sidhu is telling TheStreet's Jill Malandrino what he thinks and how his business is positioning itself.
Customers just made a $51 billion investment in New Delhi. Although the deal is mostly in warrants, it doesn't detract from the fact that Sidhu sees great opportunities in India.
He says the country has now replaced Japan in terms of economic size, while still trailing the United States and China, the top two economies.
Although still considered an emerging market along with China, the India's weakness should only be short term. Because of the Federal Reserve's tapering plan, the dollar has strengthened, driving high outflows from most emerging markets.As a result, Sidhu sees this as an opportunity to invest there, saying the downside protection via the warrants has created a "win-win scenario for shareholders." He adds that the U.S. and the Fed need to find long-term solutions for long-term problems and short-term solutions for short-term problems. He indicated that might be easier said than done, as the market's knee-jerk reaction to tapering has caused interest rates to spike, which will likely hurt the housing market that's been carrying this market recovery. In all, slower growth will likely result from tapering, he said, but he also acknowledged that the Fed can't provide stimulus forever. As it stands, he observed, it's a Catch 22 scenario. He sees America as eventually having robust GDP growth of 3% to 4% annually and becoming energy independent. Because of this, he concluded, "We will begin investing heavily in emerging markets in the future." -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV