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.”
