Speaking to ET Now, Singh said investors should “expect the unexpected,” but argued that recent actions by the US signal a return to clearer geopolitical boundaries rather than rising chaos.
Monroe Doctrine resurgence may stabilise global markets
Singh pointed to what he described as a revival of the Monroe Doctrine, under which the US seeks to maintain strategic influence across the Western Hemisphere. He said the move is aimed at preventing growing Chinese and Russian involvement in Latin America, where several nations have faced prolonged political and economic instability.
“This actually brings more certainty to the world,” Singh said, adding that tighter US control over its hemisphere could stabilise energy and commodity markets, including oil. He noted that US equity markets appear to be reflecting this sentiment, with investors reacting positively to decisive geopolitical action.
Markets not ignoring risk, but re-pricing it
Addressing concerns that markets may be complacent amid multiple geopolitical flashpoints—from Latin America to East Asia—Singh said investors are not ignoring risks but reassessing them.
“When lines are clearly drawn, uncertainty reduces,” he said, adding that clearer spheres of influence could push Europe to strengthen its own defence posture while easing prolonged global policy ambiguity.
Gold rally driven by uncertainty, but equities still offer global opportunities
On asset allocation, Singh said precious metals often benefit during periods of uncertainty but cautioned against viewing gold as the only hedge. He highlighted strong equity returns in several undervalued global markets over the past year, including parts of Latin America and Asia, suggesting selective country allocation remains key.“There will always be opportunities in undervalued markets and exits from overvalued ones,” he said, emphasising dynamic global diversification rather than a single-asset strategy.
India valuations remain a concern for global investors
Turning to India, Singh flagged elevated valuations as a key risk. He noted that Indian equities have not seen a meaningful correction in nearly a decade, largely supported by strong capital inflows.
“Valuations are still not pricing in lower nominal GDP growth,” he said, adding that a healthy market correction could create better long-term opportunities. Until then, he advised investors to maintain higher allocations to bonds and fixed income—potentially 30–40%—to manage volatility.
Singh also cautioned that global trade conditions could remain challenging for India, particularly amid stalled trade negotiations, though he said such policy decisions should be left to the government.
“In this environment, disciplined asset allocation and global flexibility matter more than chasing returns,” he said.