Talking to ET Now, Freris says: “Don’t buy American equities. The market is hugely inflated — driven by a handful of AI stocks.”
US-China trade talks? Totally meaningless right now
Freris says the renewed tensions between Washington and Beijing highlight just how volatile global trade policy has become — especially under former President Donald Trump’s rhetoric on tariffs.
“Any trade discussion with Trump is irrelevant. It can change overnight,” he said.
He noted that China’s decision to tighten control over rare earth exports — crucial for technology and defense industries — has backfired. “China provides nearly 80% of the world’s rare earths, and the US is now rushing to invest billions into domestic mining. So, what we’re seeing is a cycle of retaliation — and chaos,” Freris explained.
His takeaway? “When it comes to trade — anything goes. Don’t even try to forecast it. Tomorrow, everything could change again.”
Fed walks a tightrope between inflation and jobs
On the US Federal Reserve’s next move, Freris said Chair Jerome Powell’s tone remained cautious. “They’re saying the same thing — ‘We’ll look at the data and then decide whether to cut rates.’ But the interesting part is Powell now openly admits that steady inflation in the US is being driven by tariffs — something the Treasury still refuses to acknowledge.”He warned that US inflation dynamics are more political than economic right now. “The Fed is caught between the data and political messaging — not an ideal situation for investors.”
AI hype has over-inflated US markets
Freris didn’t mince words about the overvaluation of American stocks, calling the current setup “dangerous.”
“Five stocks account for 30% of the total S&P 500 market cap. That’s absurd. This is not sustainable.”
He advised investors to stay away from US equities for now. “When even major institutions like the IMF start warning about overvaluation, it’s time to listen,” he said.
Gold, silver, and Bitcoin: Not the safe havens you think
When asked about gold and commodity prices, Freris struck a contrarian tone.
“Everyone runs to gold during uncertainty — but remember, once central banks stop buying, gold prices will fall,” he said.Even Bitcoin, he added, has failed the “safe-haven test.”
“Bitcoin lost 5% in just three days. If that’s my safety net, I’ll look somewhere else,” he quipped.
Asia outshining the US, except India
While he’s bearish on Wall Street, Freris is more optimistic about Asian equities.
“Most major Asian markets — except India — have outperformed the S&P 500 in dollar terms this year. Taiwan, Korea, even Hong Kong have done better,” he said.
He believes Asia’s resilience comes from stronger earnings and more realistic valuations. “If you had invested in Asia at the start of the year, your returns would’ve beaten the S&P comfortably,” Freris noted.
Focus on what’s certain — US stocks are not
In summary, Freris’ outlook is clear and unapologetic:
- Don’t chase AI-fueled US equities
- Expect tariff turbulence to persist
- Look for value in Asian markets
- Treat “safe havens” like gold and Bitcoin with skepticism
“The only certainty right now is uncertainty itself,” he said. “Stay flexible, stay cautious, and for heaven’s sake — don’t buy overvalued US stocks.”
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