The US election has been front and centre of every conversation over the past month. It is finally over, and with Trump slated to take office as the 47th President of the US on Jan 20, 2025, at 30,000 ft, we would highlight the following:
The Tantallon India Fund closed 4.09% lower in October, the largest drawdown since March 2020. Markets had to price in a massive rotation by foreign portfolio investors out of India into Chinese risk assets, new domestic equity issuance, geopolitical fracture points in the Middle East being reflected in higher crude oil prices, mounting uncertainty over the US presidential election and its implications, local regulators actively curtailing retail participation in speculative options and futures trading strategies, and a tepid earnings season.
At the risk of sounding Pollyannaish, we would simply make the point that this is exactly the volatility we have been anticipating and writing about over the last several months. It provides us with an opportunity to finally buy into high-conviction names whose valuations on a three-year-plus view are now compelling.
