Bridgewater Co-CIO: It's worth having US stocks and the US economy is expected to grow strongly.

Bridgewater Associates' Co-Chief Investment Officer Karen Karniol-Tambour said on Tuesday that US stocks are a "good thing" worth holding. She added that she expects strong economic growth in the United States under the leadership of the Trump administration. Since Trump's victory, the S&P 500 index has risen by nearly 5%. Karen Karniol-Tambour stated that despite the ten-year US bond yields reaching a four-month high after Trump's victory, the prospects of economic growth in the US are driving the stock market higher. She said, "We may still have room for growth, even in the face of trade taxes and many unknown factors." Market concerns about Trump's promised policy of imposing tariffs on imports during his campaign may lead to domestic inflation in the US, keeping US interest rates high, and the Fed may reduce the magnitude of rate cuts or even raise rates. In response, Karen Karniol-Tambour stated that higher economic productivity can help offset the impact of tariffs on inflation.