By Carolina Mandl
NEW YORK (Reuters) – Bridgewater Associates Co-Chief Investment Officer Karen Karniol-Tambour said on Tuesday U.S. stocks are a “good thing” to hold, adding she expects robust economic growth under President-elect Donald Trump.
Speaking at a Yahoo Finance Invest event, Karniol-Tambour said the U.S. growth outlook is driving stocks higher despite a rise in the 10-year Treasury yield to a four-month high following Trump’s victory in the Nov. 5 presidential election.
“We probably still have room to run on growth, even under a scenario of tariffs with a lot of the unknowns,” she said. Trump vowed during his campaign to slap tariffs on an array of imported goods, which experts say could trigger a surge in inflation that requires interest rate hikes.
The benchmark S&P 500 index is up almost 5% since Trump’s election victory.
Higher economic productivity, however, could help offset the impact of tariffs on inflation, Karniol-Tambour said.