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Investment strategist Christopher Wood urges collective response to tackle tariffs
Investment strategist Christopher Wood urges collective response to tackle tariffs

United News of India

timea day ago

  • Business
  • United News of India

Investment strategist Christopher Wood urges collective response to tackle tariffs

New Delhi, Aug 9 (UNI) Christopher Wood, Global Head of Equity Research at Jefferies, has urged for a collective response against the latest tariffs imposed by the United States in the latest edition of his 'GREED & Fear' report. Wood has been awarded the tag of 'best strategist' in Asia multiple times by prestigious magazines. Wood has been publishing the renowned weekly investment 'GREED & Fear' report since July 1996. In the latest edition, the report urged countries to act collectively, stating that " the rest of the world should act collectively rather than each country seeking to do its deal with the US.' Earlier, the renowned investment strategist Wood termed the 50 per cent tariff imposition of Trump on India and Brazil as 'Xenophobic autarky.' Wood also highlighted that the US showed its incompetence regarding following international trade practices. The General Agreement on Tariffs and Trade (GATT) is related to governing international trade practices by providing a framework for tariff reduction and other trade barriers. UNI SAS PRS

Bitcoin is digital equivalent of gold, showing signs of decoupling from Nasdaq: Jefferies' Chris Wood
Bitcoin is digital equivalent of gold, showing signs of decoupling from Nasdaq: Jefferies' Chris Wood

Economic Times

time25-04-2025

  • Business
  • Economic Times

Bitcoin is digital equivalent of gold, showing signs of decoupling from Nasdaq: Jefferies' Chris Wood

Live Events Pressure Builds in Bond Markets Rising Recession Risks and Private Credit Stress China Keeps Its Cool as Tariff Uncertainty Grows (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel As global markets face rising bond yields, Fed uncertainty, and geopolitical tensions, Bitcoin is beginning to show signs of maturing into a true "safe-haven" asset, akin to Wood, Global Head of Equity Strategy at Jefferies, continues to view Bitcoin as the digital equivalent of gold. In his latest GREED & Fear note, Wood emphasized that Bitcoin has long been seen as a store of value, but to solidify this status, it needed to decouple from the declining Nasdaq Composite."This has begun to happen," Wood noted, referencing a significant shift in Bitcoin's behavior over the past two weeks. Since 8 April 2025, Bitcoin has surged by 20%, while the Nasdaq Composite has dropped by 2.4%. This growing divergence marks a crucial step in Bitcoin's evolution as a potential safe-haven GREED & Fear portfolio maintains a 5% weighting in Bitcoin, alongside a strong position in physical gold, both of which are viewed as stores of value during periods of market uncertainty. Gold, too, has been reinforcing its safe-haven status, benefiting from renewed investor interest amid ongoing geopolitical risks and volatility in Treasury report comes amid renewed concerns over US financial assets, fuelled by erratic policy signals from the Trump administration. A recent U-turn on tariffs by the president briefly triggered an equity rebound, but broader worries persist over inflation, rate uncertainty, and the direction of the Federal Treasury markets are flashing warning signals. Long-term yields have resumed their upward trend despite expectations of more Fed easing, with the 30-year yield now at 4.79%—a 96bps gap over the 2-year yield and the widest since January 2022 earlier this believes this points to a breakdown of traditional risk-parity strategies. 'Investors no longer view long-term Treasuries as risk-free,' he wrote, calling this a 'very big deal' that may lead to more unconventional measures such as yield curve control or even exchange controls in the long to the turbulence, the US Dollar Index has slipped below 100, and the dollar has depreciated 9% against the euro year-to-date—despite the European Central Bank cutting rates while the Fed remains on hold. Wood warns that any resumption of quantitative easing could further weaken the policy, Wood highlights growing strains in the private credit and private equity sectors. Moody's recently warned that firms backed by private equity—many of which were acquired during the low-rate era of 2021–2022—are facing cash flow pressures. Around 15% of rated North American corporate debt is now B3 negative or worse, and half of it is tied to private equity, the agency coupled with collapsing US imports from China—down 64% in early April, according to container booking data—has created a storm of uncertainty for corporates and markets alike. Chris Wood expects the Federal Reserve to resume easing once signs of 'wealth destruction turning into credit revulsion' US policy remains in flux, China has opted for a more measured approach. Beijing has shown no rush to announce aggressive stimulus and has instead warned that it will retaliate against any trade deals that threaten its interests. At the same time, it continues to promote free trade and globalisation, with a message of incremental easing rather than panic this geopolitical chess game, Bitcoin's recent behaviour may be a telling sign. As Wood concludes, the more it trades like gold in a risk-off environment, the stronger its case becomes as a long-term store of Read: Bitcoin surpasses Amazon in market value, now 6th largest global asset

Bitcoin is digital equivalent of gold, showing signs of decoupling from Nasdaq: Jefferies' Chris Wood
Bitcoin is digital equivalent of gold, showing signs of decoupling from Nasdaq: Jefferies' Chris Wood

Time of India

time25-04-2025

  • Business
  • Time of India

Bitcoin is digital equivalent of gold, showing signs of decoupling from Nasdaq: Jefferies' Chris Wood

Live Events Pressure Builds in Bond Markets Rising Recession Risks and Private Credit Stress China Keeps Its Cool as Tariff Uncertainty Grows (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel As global markets face rising bond yields, Fed uncertainty, and geopolitical tensions, Bitcoin is beginning to show signs of maturing into a true "safe-haven" asset, akin to Wood, Global Head of Equity Strategy at Jefferies, continues to view Bitcoin as the digital equivalent of gold. In his latest GREED & Fear note, Wood emphasized that Bitcoin has long been seen as a store of value, but to solidify this status, it needed to decouple from the declining Nasdaq Composite."This has begun to happen," Wood noted, referencing a significant shift in Bitcoin's behavior over the past two weeks. Since 8 April 2025, Bitcoin has surged by 20%, while the Nasdaq Composite has dropped by 2.4%. This growing divergence marks a crucial step in Bitcoin's evolution as a potential safe-haven GREED & Fear portfolio maintains a 5% weighting in Bitcoin, alongside a strong position in physical gold, both of which are viewed as stores of value during periods of market uncertainty. Gold, too, has been reinforcing its safe-haven status, benefiting from renewed investor interest amid ongoing geopolitical risks and volatility in Treasury report comes amid renewed concerns over US financial assets, fuelled by erratic policy signals from the Trump administration. A recent U-turn on tariffs by the president briefly triggered an equity rebound, but broader worries persist over inflation, rate uncertainty, and the direction of the Federal Treasury markets are flashing warning signals. Long-term yields have resumed their upward trend despite expectations of more Fed easing, with the 30-year yield now at 4.79%—a 96bps gap over the 2-year yield and the widest since January 2022 earlier this believes this points to a breakdown of traditional risk-parity strategies. 'Investors no longer view long-term Treasuries as risk-free,' he wrote, calling this a 'very big deal' that may lead to more unconventional measures such as yield curve control or even exchange controls in the long to the turbulence, the US Dollar Index has slipped below 100, and the dollar has depreciated 9% against the euro year-to-date—despite the European Central Bank cutting rates while the Fed remains on hold. Wood warns that any resumption of quantitative easing could further weaken the policy, Wood highlights growing strains in the private credit and private equity sectors. Moody's recently warned that firms backed by private equity—many of which were acquired during the low-rate era of 2021–2022—are facing cash flow pressures. Around 15% of rated North American corporate debt is now B3 negative or worse, and half of it is tied to private equity, the agency coupled with collapsing US imports from China—down 64% in early April, according to container booking data—has created a storm of uncertainty for corporates and markets alike. Chris Wood expects the Federal Reserve to resume easing once signs of 'wealth destruction turning into credit revulsion' US policy remains in flux, China has opted for a more measured approach. Beijing has shown no rush to announce aggressive stimulus and has instead warned that it will retaliate against any trade deals that threaten its interests. At the same time, it continues to promote free trade and globalisation, with a message of incremental easing rather than panic this geopolitical chess game, Bitcoin's recent behaviour may be a telling sign. As Wood concludes, the more it trades like gold in a risk-off environment, the stronger its case becomes as a long-term store of Read: Bitcoin surpasses Amazon in market value, now 6th largest global asset

Sensex at 1 lakh: Will ‘Buy India, Sell US' trade propel index past this key milestone in 2025?
Sensex at 1 lakh: Will ‘Buy India, Sell US' trade propel index past this key milestone in 2025?

Mint

time23-04-2025

  • Business
  • Mint

Sensex at 1 lakh: Will ‘Buy India, Sell US' trade propel index past this key milestone in 2025?

Indian stock market: As the US stock markets reel from President Donald Trump's flip-flop on tariff policies, global investors are seeking safer ground — and India's stock market has emerged as a standout. Amid the turbulence, India is increasingly being seen as a beacon of stability and opportunity in an otherwise choppy global environment. The steady buying by foreign institutional investors (FIIs) over the last five sessions to the tune of ₹ 17,930 crore further highlights the growing appeal of Indian equities. India also became the first major market to wipe out tariff-induced declines last week. While India has risen 2% on a year-to-date (YTD) basis, the US stock market remains 10% down for the year. This divergence reflects the "sell America" trade gaining traction. Analysts are largely concerned that the unpredictable stance of the Trump administration on tariffs and other policies undermines the outlook for the US economy. According to a Business Standard (BS) report, Christopher Wood of Jefferies recently recommended investors 'sell' US stocks and hike exposure to India as Trump's tariff policies have put the markets on edge. With US stocks still trading at 19.2 times forward earnings, global investors should continue trimming their exposure in favour of markets like Europe, China, and India, Wood noted in his latest GREED & Fear investor update, as per the BS report. Prashant Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities, said the Indian stock market is in a safer place when it comes to the tariff war, where the 90-day period is giving India a lot of opportunity to explore and exchange agreements with the US. Even the FIIs have felt it now, especially with the US facing its own troubles—both within the government and in terms of the financial administration, said he. I think the US is heading into a recession, and obviously, when a country goes into recession, money tends to move out and gets invested in places with higher growth potential, Tapse added. He believes among emerging markets, India is the only place where we can see 6%+ GDP growth, along with a strong consumption story driven by its own domestic population. These are the factors he believes are behind the recovery in the Indian stock market. But the question now remains, how much higher can the current bullish trend on Dalal Street propel the Indian benchmark index – BSE Sensex. The index, which is currently trading at above the 80,000 level, needs to rally another 25% to achieve this milestone. While analysts believe this feat is likely, they are more hopeful about the BSE Sensex hitting a new high this year. The last all-time high on the Sensex was 85,978.25, scaled on September 27, 2024. "I may not say that Sensex may cross 1 lakh, but there are high possibilities we will be at a new high. Sensex can likely cross the 90,000 level this year," Tapse said. Tapse explained that this positive trajectory will be seen mainly because money always chases safer zones. "Right now, India and China are the best-case scenarios. Though China may not fully benefit since the US has ongoing tensions with it. So, if you look closely, India stands out as the most attractive destination for US or global investment flows. In addition to that, supportive microeconomic factors—like food prices, inflation, and interest rates—are also contributing to this growth," he said. Meanwhile, Dr. Vikas Gupta, CEO & Chief Investment Strategist at OmniScience Capital, sounds even more bullish and believes Sensex hitting 1,00,000 is well within the "realms of possibility". "This would require two things, or various other similar combinations of PE and EPS. Assuming that sentiment is positive for stock markets in general and Indian stock markets in particular, this requires a Sensex EPS of around 4000, which it is quite close to achieving within 2025. The PE needs to be around 25, which is also likely to have been 25 for the last 5 and 10 years. Also, keep in mind that the RBI has started cutting rates and is likely to continue. This supports multiples close to 25. The Fed cutting rates aggressively is not so clear given the uncertain impact of tariffs on US inflation; if it happens, it also supports higher PE multiples for all markets, including Sensex," Gupta said. Factors driving the Sensex journey to 100000, primarily, are earnings growth of 10%-12%, interest rate cuts, and positive investor sentiment, according to him. Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions. First Published: 23 Apr 2025, 01:02 PM IST

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