4 popular global investment strategies discounting Trump as a lot of fury & fire: Ajay Bagga
Ajay Bagga, Market Expert, says the market now predominantly favours long positions in gold, emerging market debt, US equities, and Chinese technology stocks. These four investment strategies are currently popular on a global scale, yet none appear to adequately account for the potential impact of Trump’s tariffs. Bagga says the market appears somewhat complacent. The true implications will likely become clearer in the next two to three months. April 1st is expected to be a crucial date, as it marks the beginning of announcements regarding the implementation of tariffs, followed by additional updates starting April 2nd.
A lot of these news plays are flowing around with respect to the threat related to tariff, the emerging market flows etc. What is your view on the broader market space and any pockets of opportunity that you are spotting right now because though the consensus view or the buy is in the largecap space, does any niche pocket within the broader market look interesting to you?
Ajay Bagga: Right now, no. I would say let us hold on for the broader markets right now. Overall if you see the global macro, what are the global bond markets telling you, what are the global currency markets telling you, stock markets are still complacent, they are not believing the Trump threats, the Trump strategy is to shock, then negotiate, then come to a deal which might be a one-tenth or one-twentieth of the original ask.
Also, the markets this time around are quite wary and a bit complacent. Currency markets have not
