'Market valuations haven't reached cheap levels yet'

The announcement of tariffs by US President Donald Trump has triggered a stock market correction worldwide. S NAREN, executive director and chief investment officer (CIO) at ICICI Prudential Mutual Fund, tells Puneet Wadhwa in an email interview that while there is fear in the market today, valuations haven't reached cheap levels yet. Edited excerpts:

- S NAREN

How different is the current market correction from the Covid-19 crisis, the Global Financial Crisis, or the dotcom bubble? Would you consider this a black swan event?

The current correction has been triggered by a government policy. When corrections are policy-driven, reversals are easier because policies can be rolled back. In contrast, events like Covid-19 are structural shocks with uncertain timelines. As a framework, when any asset class becomes overvalued—as seen with the "Magnificent Seven" in the US—it becomes vulnerable to corrections triggered by external events.

Is this a time to look for potential multibaggers?