Carry trade issues probably behind us; we will protect our positions wherever we can: Anurag Singh
Anurag Singh, Founder & Managing Partner, Ansid Capital, says fundamentals do not change like that. The unwinding of carry-trade has happened now. Hopefully, that is behind us. People will not again try and play smart on this, borrowing in yen and investing in US or global markets. What do you make of first the big global meltdown on Monday and the recovery thereafter?
Anurag Singh: I will not pretend to act as if I saw this coming. I was also caught by surprise. I was traveling in the last couple of weeks and was not prepared for it. Well, all fingers point to the yen carry trade. Now, of course, everybody knows how that works and looks like that because it was a quick technical selloff.
As for the US jobless data, I do not know how 120,000 jobs were created. Though it is less than 200,000, still some jobs were created. But why that coupled with a 46 PMI is so scary for the markets that it had to lead to this kind of a selloff? The other story in this market, what people are struggling within the US is that we know Buffett sold Apple stake and all of that. It sends a big signal that there is nothing buy and hold forever in any market.
Amazon came up with poor guidance and with silly reasons and Google is struggling with its own problems. So, the market is looking for where the next leadership comes from. Is the AI story real? Are the profits here to be realised? S&P estimates this year are $250. There is a doubt that they are going to be realised. So that is the mix of things in the market and it is going to be
