“Credit card users are experiencing a lot higher default rates,” Freeman said, adding that businesses which thrived during COVID are now struggling as consumer demand has cooled and government support has ended.
Freeman also stated that many companies that expanded rapidly with pandemic relief funds are now under stress. “In our restructuring practice, we are seeing many kinds of businesses that flourished during COVID really having a difficult time,” he said.
Turning to India, Freeman observed a growing positive sentiment globally, though still limited in scope. He said most Americans primarily associate India with the IT sector and are not yet fully aware of the broader strength of its economy. Despite that, interest in India is rising, especially as global supply chains seek alternatives to China. Freeman believes India stands to benefit from this shift, especially in manufacturing and exports.Also Read: Tariffs still a drag even as US trade tone softens: Citi
However, he stated that geopolitical risks in India’s neighbourhood may not be fully priced into the market. Rising tensions with Pakistan and broader global instability could impact sentiment. Meanwhile, Indian markets have remained strong, partly due to the TINA factor—”There Is No Alternative”—driving foreign inflows.
Freeman also spoke about the extreme market volatility in the US, driven by conflicting political and economic signals. “We get these big down swings 2% to 3%, and then the market goes up 2% to 3%,” he said, attributing it to policy chaos and uncertainty, particularly around US-China relations and the Federal Reserve.
Also Read: Axis MF cautious on IT and metals, sees opportunity in selective growth stocks
For the entire interview, watch the accompanying video
Catch all the latest updates from the stock market here
