Lyn Alden turns cautious on US markets, says tariff risks are being underpriced

Lyn Alden, Founder of Lyn Alden Investment Strategy, said she is "hesitant on the US market over the next month or two", citing concerns that investors may be underestimating potential risks from upcoming tariff actions.

While markets recovered quickly from earlier tariff fears, a similar scale of proposals set for August and beyond is being largely ignored this time. “Last time in April, credit spreads were blowing out... yet this time, the market is very calm with it,” Alden said.

According to her, the market is too focused on Federal Reserve policy and not paying enough attention to trade-related developments that could have a significant impact.

Despite this cautious near-term view on US equities, Alden remains positive on emerging markets. She believes they still offer value and potential, especially in regions like Latin America, Southeast Asia, and Eastern Europe.

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India, she said, continues to hold promise as a structural growth story, even if it is not as undervalued as its peers, such as Brazil or China.

Alden also expects the US dollar to weaken over the next 18 months, which could provide an additional boost to emerging markets.

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For the entire interview, watch the accompanying video

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