Fund manager John Davi is poised to address challenges related to President-elect Donald Trump’s tariff policies.
Mr Devi said he was concerned that the new government’s policies could be “highly inflationary” and believed it was important to choose investments carefully.
“The small-cap industry makes more sense than the large-cap industry,” the CEO of Astoria Portfolio Advisors told CNBC’s “ETF Edge” this week.
Devi, who is also the firm’s chief investment officer, expects the red sweep to help drive pro-growth, pro-domestic policies that benefit small-cap stocks.
Wall Street seems to agree, so far. Since the presidential election, the Russell 2000 index, which tracks small-cap stocks, is up about 4% as of Friday’s close.
Mr. Davey, whose firm has $1.9 billion in assets under management, also wants to remain in the country despite the risk of tariffs.
“We’re overweight the US, and I think that’s the right strategy for the next few years leading up to the midterm elections,” Davey added. “We have two years of where he is. [Trump] You can control a lot of the story. ”
But Mr. Davey plans to stay away from bonds, citing the challenges associated with the widening budget deficit.
“If you’re a solid bond owner, be careful,” Davey said.
Since the election, the benchmark 10-year Treasury yield has risen 3% as of Friday’s close.
