The Narendra Modi government's second term will be better than Modi 1.0, which was more about learning how the economy works, believes Manish Singh, CIO, Crossbridge Capital. Looking at the measures announced by the finance minister on August 23, Nirmala Sitharaman restored the pre-Budget setting so quickly on things they have done because they have realised it is the right thing to do for the economy, said Singh.
“There is a considered way of looking at the economy and how it works and not just going by what bureaucrats have told the minister that may not be the right thing to do,” he added.
There are many positives from the recent announcements but more has to be done like NPA issue etc, he said, adding that if the NPL issue is not addressed in the short term, it could come to bite India.
Crossbridge Capital remained positive on India from a medium to long-term basis but in short-term.
Investing in gold has always been about insurance in the ultimate scenario, where currencies break down or government breaks down, said Singh. Moreover, gold is also giving positive yields, while bonds are giving negative yields, he said. However, that does not mean it is time to buy more gold and if one has some gold then great.
“So gold is a good safety asset to hold, so if you don’t have it then you should have it but I don’t think it is really going to be the case where the world is coming to an end or currencies are breaking down,” he said.
He is also of the view that the US dollar will remain strong.
In the latest in the US-China trade spat with the tariffs being announced on Friday. Speaking from the side-lines of the on-going G-7 summit, US President Trump said he has great respect for China and that there was a phone call from China to restart talks. He said, he thought they were going to have a deal on proper terms.
said one has got used to flip-flop from Trump. “What I would do and what I am doing in my portfolio is that I am looking at US Fed and am looking at what Trump really wants and Trump really wants to get re-elected and in that sense his big contest is not with the Democrats and what they are going to do but what happens to the US economy and that makes me believe that he is not going to have recession on his watch, which means he will escalate it but he will back down and he will talk,” he said, adding that there would be a de-escalation.