In an interview with ET Now, Aten Venture Partners’ Head of Research Santosh Rao shared his initial takeaways from Donald Trump’s White House address,
highlighting a gap between inflation rhetoric and real-world affordability while weighing US CPI data, market rotation, tariff risks and prospects for equities in 2026.
Donald Trump’s White House address
On Donald Trump’s White House address, Rao said, "There is a slight disconnect between what he said and what is actually happening. The key operative word in the US right now is affordability and prices have gone up. He says prices are coming down, which is debatable. Some prices have eased, others have not.""There is, therefore, a bit of a disconnect. He has also spoken about dividend checks and related measures, which are already factored in. Let’s wait and see. He is always optimistic and tends to get ahead of the curve, speaking a bit ahead of time. Hopefully, things will improve, but for now, affordability remains a major concern and prices are still high," he added.
US CPI data
Talking about the US CPI data, he said "We are set to get CPI data tomorrow, and that will give us a clearer sense of the trend. Until now, we have been operating without sufficient data. At this point, if CPI is reasonable -- around 3% or lower -- then it suggests prices are being kept from rising too much. However, I wouldn’t say prices have come down appreciably and I can say that with confidence because I live here and pay these costs myself."Prospects for equities in 2026
On the prospects for equities in 2026, Rao said, "Looking ahead, next year appears more promising and that is already being reflected in the stock market. What we are seeing is a rotation -- investors are taking profits from the winners and reallocating capital into financials, healthcare and other sectors. This trend is likely to continue as we move into next year.""There are several pro-growth incentives and policies coming in, which makes next year look strong. While we may not see the traditional year-end “Santa Claus rally” just yet, momentum should build over time. Overall, next year should see much better activity in the financial markets," he added.
Tariff risks
On tariff risks, Rao said, "I don’t think he (Donald Trump) is going to go much further, except for imposing some punitive tariffs here and there. At this point, things appear largely settled. In some cases, he may bring tariffs down for India, which would of course be beneficial for India as well as certain retail markets here."(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
