The uncertainty around Trump's policies, combined with inflationary pressures, might affect the timing of interest rate cuts by the RBI.
Volatility in food prices and the inflationary impact of Trump's policies could delay the easing of domestic inflation, causing a hindrance to RBI's policy easing.
Higher inflation can lead to a stronger correlation between stock and bond performance, reducing the effectiveness of bonds as a safeguard against market volatility.
Real assets, cash, and gold are suggested as effective hedges against inflation, while defensive sectors and high-quality stocks can provide stability during inflationary periods.