In a chat with ET Now says actually the world economy is getting better and ultimately that should be what moves shares prices.Edited excerptsIt depends on what the president decides because the president will have to decide whether to appoint an interim caretaker government which could theoretically last a year or more or to call for snap elections which could be held as early as January. Because the prime minister lost the referendum by such a wide margin, it was over 20%, the president may feel compelled to call a snap election simply because the people have voted so obviously for a fresh mandate. If that is the case and the Five Star Party is the leader of the next coalition -- albeit it would have to be a very large coalition -- then the implication is clearly bearish for the Euro because Italy is the third largest economy in the European Union and the Five Star Party and its associates would like Italy to leave the Euro zone. So I feel this is a bearish event for Europe in the short term.I do not know if it is months or years, but my sense is that this was an important event because it has indicated that by a very wide margin the Italians are not satisfied with the status quo and really this goes back to austerity measures which afflicted Greece as well. The Europeans are simply not spending money to try to invigorate their economies the way the Americans did after their crisis in 2008. Consequently, growth in the economy is just not strong enough to make people happy. I think that whether it is months or years this is actually the beginning of Italy’s exit from the Euro zone.If you look at December going back in history, it is a strong month. It is one of the strongest for equities globally and for America but what is curious is if you look very closely, we have reached a little hump in the beginning of December and then typically the market goes down between then and the middle of December. The strongest part of December historically going back 1928 has been the last 15 days. I guess people are closing their books and wrapping things up and kind of window dressing.Whatever the case, because markets have risen so much in the last three weeks, they need some consolidation and the Italian election is a nice excuse. So, the trend this morning with the markets in Asia going down will continue for the remainder of this week.Well they are and they have been for 20 years. Curiously, prior to 1995, that correlation that did not exist and correlations do not survive forever and I would have thought that with all the changes going on in the world today maybe this will take some time to play out that some of the correlations of the last 20 years will breakdown. If we do see the treasury yield in the US sustainably picking up and breaking through this downward trend trajectory it has been in the last 20 years, that will be the base for everything else. The 10-year treasury will be able to eclipse 3% by the first quarter of next year. So with that in mind, maybe a strong dollar will not necessarily mean weakness in emerging markets but at least for now it seems that that correlation seems to remain in place and it is not something I can entirely understand beyond just thinking that the US is such a large economy and market that if the dollar is going up it means money is going into that economy and market.Therefore it has to be coming from somewhere else and emerging markets are very small compared to America.Well the near term should be weak for equities around the world, not just in India but in America as well and when I say near term I am really just talking about the next week or so. I do expect to consolidate a bit because we ran up so fast and in fact the 10-year treasury was at 2.5% on Friday and now it is back at 2.35. This shows the market is just taking a little bit of a pause. But I would say if we can look beyond the political noise, economic activity globally is actually accelerating and there are many indicators of that; the German expectations which were very strong for November to the American jobs data over the weekend and all of the good numbers that came out of the US last week in terms of house prices and consumer confidence and GDP growth being revised up. Also the Goldman Sachs macroeconomic surprise indices are very strongly moving ahead in all parts of the world.So what I am trying to say is basically that actually the world economy is getting better and ultimately that should be what moves shares prices and also you have got to think that all this political instability what will come out of it is less fiscal austerity definitely, we are already seeing that in the United States and Japan and I think we are seeing the beginning of it in Europe too and more government spending is also a good thing. So I would not get too bearish but I do think we need to consolidate this week.