Geoffrey Dennis sees Trump’s policies as a risk to US equities

Independent Emerging Markets Commentator Geoffrey Dennis believes that US President Donald Trump’s policies are creating significant volatility in the equity markets. He pointed to the uncertainty surrounding tariffs, which he described as “extraordinarily volatile,” and the broader economic impact they are having.

“The equity market right now doesn’t look good because of all the mistakes Trump is making and the volatility he is creating with his tariff policy,” Dennis said.

Dennis pointed out that falling bond yields signal concerns about weakening economic prospects. “The US economic data is terrible, frankly, and there is an increased risk of recession,” he said.

While the Federal Reserve may not be in a position to cut interest rates unless the economy weakens further, the soft equity market and policy uncertainty are already weighing on investor confidence.

Despite temporary relief from tariff rollbacks, Dennis believes Trump remains committed to imposing duties on multiple countries and products. “I don’t think in any sense we’re going to get major relief from here, except we just don’t know,” he said.

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While the US market faces challenges, Dennis remains positive about India’s long-term prospects. He acknowledged that China has led the way in market performance due to perceived undervaluation, steady economic growth, and advancements in artificial intelligence. However, he expects capital to shift back to India over time.

“At the end of the day, I still think money will come out of China and go back to India,” he said, adding that India remains a better long-term story. He also highlighted the sharp decline in oil prices as a key positive for the Indian economy.

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For the full interview, watch the accompanying video

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