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Now that Musk has distanced himself from Trump, Matthews believes it may be a sign of deeper shifts. “Silicon Valley will become increasingly disenfranchised,” he said, though he added that the broader market implications are still uncertain. “There are so many variables, it is difficult to say whether it is a negative or a positive.”
Matthews also highlighted concerns with the US fiscal deficit, which is projected to rise to 9% next year from the current 6–7%. “That doesn’t look good. The US used to run deficits of 2–3%, and countries like Sri Lanka, Pakistan, and Nigeria run 9% deficits,” he noted. He added that Musk may also be reacting to the rollback of electric vehicle credits.Also Read | Donald Trump-Elon Musk Battle: A timeline of the turn of events
On the global market outlook, Matthews pointed to a shift away from the US as the dominant investment destination. “For 15 years, we had this massive outperformance of the US versus the rest of the world. That’s ended,” he said. Political uncertainty and rising deficits are contributing to a weaker dollar, which he believes will continue.
He expects other regions to do better. “Hong Kong should continue to outperform. Korea is very cheap,” though he noted competition from Chinese firms like BYD, Huawei, and Xiaomi. “India is a good story. It remains a good story,” Matthews said, but added that since it was already performing well, it may not be one of the top outperformers going forward.
For the full interview, watch the accompanying video
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