Are you disappointed with the decline in the market? If yes, you need to look at the words of Matt Orton, Chief Marketing Strategist of Raymond James Investments. Orton believes that the main reason for this ups and downs in the market is the new tariff policy of the US government. He said that it is showing an impact on the market in the short term. However, it will not affect the market in the long term. His point is a lot for investors, especially for retail investors, who are quite disappointed by the ongoing decline in the market in October 2024.
Midcap stocks declined more
The Nifty has fallen more than 10 per cent of its record height of 26,216. The Nifty Next 50 has declined by 18 percent. The midcap 150 index has fallen by about 12 per cent from its all-time high. Investors have to lose more losses, who invested in shares at higher prices. They are afraid of further decline in the market. The market declined a major decline for the second consecutive day this week. On 11 February Sensex Crash over 1100. Nifty Rolled to 340 points. Bank Nifty saw a weakness of 640 points.
Trump’s tariff policy part of a well thought out strategy
Matt Orton said that US President Donald Trump’s tariff policy is part of his comprehensive strategy. He wants to increase the competitive capacity of products of American companies. He said that India is a strategic partner and there is a lot of hope to deal with India. Despite the US decline due to the announcement of increasing tariffs, he has advised the clients to use this opportunity for purchase.
Big opportunities for investing in Indian markets
He said that as far as the market trend is concerned, India has been protected from Global Economic Sloidown. However, high valuation, sluggish economic growth and weak earnings growth have affected the market’s sentiments. He has full faith in the earnings growth of companies in India. He said that the performance of select companies has been good. He advised investors to keep money ready to invest in this decline.
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Recovery will come in second half
Orton believes that two things are necessary for recovery in the Indian market. First, weakness in dollars is necessary. RBI has reduced interest rates to increase the growth of economy. However, the investment of foreign investors in Indian stock markets will remain weak until the dollar comes weak. He said that the Indian market will start to show up again as the tariff is related to the tariff and the growth growth increases. For this, you may have to wait till the second half of this year.