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Indonesia’s Bear Whisperer Who Called Stocks Correctly Now Turns Bullish

  • Gains by U.S. Democrats will restrain Trump, fund manager says
  • Timely drop in oil to ease current account pressure: Rachmat
Receding global risks lure overseas investors to Indonesian stocks

The man who twice correctly predicted bear runs in Indonesian equities has turned bullish on the country’s stocks and bonds, with a little help from slumping oil prices and the recent U.S. elections.

“Donald Trump can no longer do as he pleases,” said John Rachmat, a strategist at PT Pinnacle Persada Investama, which manages 4.8 trillion rupiah ($334 million) of assets. Democrats, having gained majority control of the U.S. Congress, will constrain the president’s budget spending and trade war rhetoric, he said. “His plan for a second round of tax cuts would dissipate totally, and this brings a huge relief to the U.S. and global bond markets.”