Nowhere to hide, keep your powder dry and sit on the sidelines till Trump takes office: Andrew Holland
Andrew Holland, CEO, Avendus Capital Public Markets Alternate Strategies LLP, says we might get relative outperformance but at this point, just keeping your powder dry is probably the best thing to do until some of the scenarios play out after Trump assumes office.
Hospitality, and traveling will be a key feature at least for next year or so. The airlines look okay. Some kind of premiumisation is happening in pockets and alcoholic and non-alcoholic drinks are the place to be there. Finally, electronic manufacturing (EMS) is a great area to be in the long term. Those three themes are in play, but if markets go down, then these stocks will go down as well.
What is spooking the global markets right now? Do you think the excesses of the Trump rally are getting shaken off a little?
Andrew Holland: Yes, you are bound to see a little bit of slowdown in the index after its rise but one thing that has clearly happened is that all the attention and all the focus is now on the US and that is what we have seen in terms of the markets not just the equity market, but obviously the currency and to some extent crypto as well. I do not see that stopping. I think that is going to be the kind of theme as Trump puts together his administration and America first kind of comes out of this.
So, the bad news is that for emerging markets, any kind of passive flows which might have come, are going to be directed towards developed markets, particularly the US. So, there are too many uncertainties for emerging markets up until after the
