The expert and author of the global market Ruir Sharma said that the American economy was a bubble and had to break. He said that for a long time, the US stock market had over-performed and that everyone believed it, something he says is a mistake.
Sharma said in an interview with India today that markets and the economic profession are the most vulnerable when there is “think think”. “The only thing you are conditioned to see when there is far too many groups, when everyone around you says the same thing and this is where I find that the markets and the economic profession are the most vulnerable. This is the meaning that I obtained at the end of last year, that is to say that everyone thought that the only place to invest is America. Consequently, I labeled that the mother Rahul Kanwal.
“But how can you have a situation where 80% of all the capital flows in the stock markets around the world come into a single country. It was the trend this decade. Something was required to break. Of course, people say that Trump stings this bubble, but someone has set the air in this bubble in the first place. Extrapolation.
Sharma said the US stock market had dominated the world after the 2008-2009 global financial crisis. The US stock market had become almost 70% of global market capitalization, with 80% of all the additional flows devoted to it. “When something is so overvalued, that tells you that it is set up for disappointment. I think that is what is happening under Trump. The other thing I think that many people have underestimated is why Trump does everything he does.
According to Sharma, Trump identified that many Americans were not satisfied with the way the economy took place, inflation was also high. “The stock market was fine, but which has the stock market, perhaps the highest 10 to 20%, the lowest 80% received no advantage from this great technological boom, the stock market boom. It was a very laminated economy. Trump was able to identify that the average American wants disruption,” he said.
“At the heart of this one, we must admit that the American economy was a bubble. He was artificially justified by the government, and that the average American was not satisfied with the way in which their economy behaved. Identify that it was the key thing and once you have somehow identified that you see that certain elites were going to come to power and start doing things that are not acceptable to the status quo and the elites, “he said.
Speaking of India, Sharma said that the capital in the world was just in America this decade, and that the entries were “fairly poor in India”. “The flows of foreign capital in India. Even IDE has slowed down, but especially the stock market flows have dried in the past two years. I have suspected what can happen in this new environment, it is that India could attract larger capital flows over the next two years,” he said.
