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Lighthouse Canton's Chief Investment Officer Sunil Garg shared his views on global markets this morning with @Haslinda Amin on Bloomberg Insight. Â
China is expected to outshine other emerging markets as there is considerable headroom for recovery in China's economy. Factors for this include cyclically low positioning, improvement in macro variables, and strong domestic investor momentum making the market less dependent on global capital flows. As Chinese tech experiences its best quarter in a decade versus the U.S., the "Mag 7" tech giants should no longer be viewed as a single construct, distinguished by AI-aligned plays and consumer companies like Apple and Tesla. The broader AI ecosystem rather than just a focus on Semis and Chips, offers opportunities. Trump's proposed tariffs will be inflationary and potentially create labor shortages, drawing parallels to post-Brexit Britain. This unpredictability complicates the Federal Reserve's path forward, likely forcing an "extended pause" in rate cuts potentially through fall or beyond.
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Watch the full interaction below:
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