Speaking to ET Now, Sanger noted that while the Nasdaq remains buoyed by the artificial intelligence theme, strength in US markets is no longer confined to a narrow set of stocks. “It is more than the Dow and the S&P. If you look at the Russell 1000 and the Russell 2000, the broadening of the market rally is actually quite notable. Transports, banks and financials are doing well,” he said.
Sanger added that the recent pause in big technology stocks should not be viewed negatively. “The fact that tech stocks are taking a little bit of a breather is not a bad thing for the market. It is a good thing because you are seeing a broadening of economic optimism,” he said, pointing to expectations of two to three US Federal Reserve rate cuts this year and reasonably stable economic data. According to him, the key variable to watch next will be corporate earnings, which will determine how durable the optimism proves to be.
Venezuela Oil Talk Unlikely to Flood Markets
Commenting on remarks by US President Donald Trump about major oil companies investing heavily in Venezuela, Sanger urged caution. “First of all, do not believe everything you hear from President Trump,” he said, recounting discussions at the Goldman Energy Conference where energy executives highlighted the need for contract security and stable policy frameworks.
Sanger noted that energy investments are inherently long-term and unlikely to yield results within a couple of years. “Nobody is going to make investments that pay off in the next two years. Any meaningful impact would be in year three and beyond,” he said, adding that oil majors are prioritising safety and security of personnel before committing capital.Market signals, he argued, reinforce this view. “Oil markets have been up two out of the last three days. They are telling you that there is no expectation of any flood of oil coming from Venezuela anytime soon,” Sanger said.Shifting World Order Raises Long-Term RisksOn broader geopolitics, Sanger warned that an increasingly aggressive US posture could have long-term implications for global market stability. “If you are a country that is not fully comfortable being aligned with the US, you have to think about spending more on defence and diversifying away from US treasuries,” he said.He cautioned that moves such as potential US intervention in Greenland could mark a deeper shift away from a rules-based global order. “That opens Pandora’s box. Markets have operated under a backdrop of a stable and reliable world order. You are now seeing more unproductive investment in defence, gold and other safe assets,” he said, calling the trend broadly negative for long-term market stability.
However, Sanger acknowledged that emerging markets could benefit if the US dollar weakens. “It is very murky, and I do not think it is overall good for markets if the existing world order is replaced by something we do not yet understand,” he added.
Tariffs, Courts and Policy UncertaintyTurning to the US Supreme Court’s pending ruling on the legality of Trump-era tariffs, Sanger said betting markets are assigning a high probability to a verdict against the administration. “The betting markets are showing about a 75% probability that the Supreme Court will rule against President Trump under the IEEPA authority,” he said.
While such a ruling could provide short-term relief to markets, Sanger warned that alternative trade tools remain available to the US administration. He also flagged concerns over a proposed bill imposing punitive tariffs on countries importing Russian oil. “If that comes into force, it would be hugely negative for countries like India and China,” he said.
Where Is the Money Going?Against this backdrop, Sanger said his approach remains cautious. “We are being somewhat cautious in terms of overall exposure,” he said, adding that his firm is allocating capital to energy supply chains critical for AI data centres, a theme he believes is relatively insulated from macro volatility.
He remains bullish on metals and precious metals. “In this uncertain world, gold, silver and platinum are valuable, and we own mining companies in that space,” he said.
On India, Sanger said the focus is firmly bottom-up. “We are much more focused on domestic-facing industries and specific companies in power, autos and some NBFCs, rather than making big macro bets,” he said, adding that some capital remains on the sidelines as global uncertainties continue to unfold.
