Trump’s return to the White House could prompt a shift toward resolving major conflicts, including the Russia-Ukraine war and tensions in the Middle East. “If Trump comes, we can pretty much assume that all the wars and geopolitical risk…[could go] towards some sort of settlement,” Singh stated, suggesting that such developments would be “very positive for global markets.”
Singh shared his outlook on Trump’s potential economic policies, particularly on tariffs, which have previously stirred global trade tensions.
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He views Trump’s aggressive stance on tariffs as a strategic bargaining tool rather than an all-encompassing policy.
“This tariff thing is just a bargaining chip from Trump’s side. He’s a dealmaker but he is not the one who will kill businesses, and certainly not US businesses,” Singh noted.
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He anticipates a pragmatic approach, with negotiations happening on a country-by-country basis rather than blanket tariffs across the board.
The US dollar, Singh expects, will remain strong due to rising 10-year yields, especially as the US economy outperforms some European economies, which are grappling with their own economic challenges.
“My sense is dollar will continue to stay stronger, mostly because European economies are really struggling,” he added, attributing the dollar’s resilience to its relative strength against other currencies.
When it comes to investment strategy, Singh says his portfolio remains largely US-focused due to valuation comfort, favoring sectors like technology, financials, communications, and consumer discretionary.
He notes that, in the event of a Trump victory, US banks could perform particularly well due to the likely regulatory environment.
While he acknowledges the investment potential in Indian markets, he prefers US equities for the valuation comfort they currently offer.
“There is a lot of money to be made. If there’s a Trump victory banks will particularly do well,” Singh explained, noting that while energy stocks may see mixed results, healthcare is expected to remain resilient regardless of the election outcome.
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For the entire interview, watch the accompanying video
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