Hope this helps....Rajiv JainChairman and chief investment...

Hope this helps....

Rajiv Jain

Chairman and chief investment officer
GQG Partners

“Seismic change” is under way, bigger than what global markets saw during Covid, Jain says. “This time, the Fed is not going to jump in, there are no fiscal bullets left, and we started with high valuations.”

Companies making goods abroad or benefiting from outsourcing are at risk for margin deterioration, Jain says. Meanwhile, the support that U.S. stocks and the economy have enjoyed from zero interest rates, quantitative easing, tax cuts, Covid-era stimulus, and the Inflation Reduction Act is now in reverse.

“We are in a new era, so multiples should be lower,” Jain says. “That’s less of a problem when you leave the U.S.”

Jain, another member of the Barron’s Roundtable, expects tariffs to create an economic slowdown, but he isn’t as pessimistic as others about the global economy. “You can’t compare everything to Smoot-Hawley. There was so much else that went into the Great Depression,” Jain says of the 1930s tariff.

Jain is also less worried about sustained inflation, because higher prices will reduce demand for many goods. He believes that exporters and retailers will absorb much of the price increases, partially mitigating the hit for consumers.

With more market choppiness ahead, Jain sees opportunities abroad, outside of China. Jain likes European banks, which should benefit from regulatory changes and increased spending on infrastructure and defense. He also likes India, which was hit with lower tariffs than rival export destination Vietnam, and Brazil, which is seeing strong earnings and credit growth. Within the U.S., Jain favors energy companies like Exxon Mobil

XOM

+3.21%

and Chevron as well as regulated utilities like NextEra and AEP.