Trump Rally's Prospects 'Not Looking Too Hot,' Bond Manager Says
- Memani says markets need fiscal expansion to sustain rally
- OppenheimerFunds CIO says emerging market bets are good value
Krishna Memani, chief investment officer at OppenheimerFunds, explains why the U.S. government must deliver on fiscal stimulus expectations in order to jump start economic growth. He speaks on 'Bloomberg Markets.' (Source: Bloomberg)
The stock market rally fueled by Donald Trump’s election is poised to stall as prospects recede for quick implementation of pro-growth policies, according to Krishna Memani, who oversees more than $220 billion at OppenheimerFunds Inc.
The S&P 500 Index has surged 10 percent since Trump’s surprise victory in November, which Memani attributed to the expectation of higher corporate earnings and growth. For the market to rise another 10 percent to 20 percent, policy actions on taxes, regulation and trade need to be the driver, he said Thursday in an interview on Bloomberg Television.