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Trump’s Inauguration Day: What to expect

Donald Trump’s second term as US President will begin with his inauguration on Monday. He plans to sign numerous executive orders and hold a campaign-style rally. Several foreign leaders are invited, and outgoing President Joe Biden will attend. The events are largely funded by Trump’s inauguration committee.

While warning about the risk of a looming oil shock, Groww Mutual Fund’s equity chief, CA Anupam Tiwari, says multicap strategy together with bottom-up investing can work well in this market.

Although there might be valuation concerns in some specific areas, the overall investment environment for active stock picking in mid and small caps has improved to some extent, he says in an interview with ET Markets.

Edited excerpts from a chat:

Markets have recovered from recent corrections despite geopolitical tensions. What is the market pricing that investors may be underestimating?
Markets are showing signs of recovery from the fall due to the prospects of de-escalation and continued talks regarding the resolution of the Middle East crisis. Nevertheless, one possible threat that investors might be overlooking is the possibility of prolonged geopolitical instability that can cause oil prices to remain elevated for an extended period.

Sustained higher energy prices could have broader implications for inflation, currency stability, corporate profitability, and economic growth. While markets appear to be pricing in a relatively benign outcome, any disruption that results in persistently elevated crude prices could have a more meaningful impact on the macroeconomic environment than is currently reflected in markets.

With valuations still elevated in parts of the market, how should investors think about allocating money across large-, mid- and small-cap stocks today?
Broad concerns regarding valuation levels in the market have cooled off in recent months. At the current juncture, close to one-third of the mid-cap space is priced below its five-year average valuation levels, whereas nearly half of the small-cap space is trading below its own five-year average valuation levels.

Under these circumstances, although there might be valuation concerns in some specific areas, the overall investment environment for active stock picking in mid and small caps has improved to some extent. Here, a multicap strategy together with bottom-up investing can work well in uncovering better businesses.
The multicap category has seen rising investor interest. What advantages does a multicap strategy offer in the current market environment compared to pure large-cap or mid-cap approaches?
While the current phase is marked by heightened volatility, volatility is often uneven across segments. In such an environment, a multicap strategy may provide disciplined exposure across market caps within a single portfolio.This allows investors the relative stability and earnings visibility of larger companies, while also participating in the long-term growth potential of mid- and small-cap businesses. By maintaining exposure across segments, a multicap approach can help reduce over-reliance on any single category and provide a more balanced way to navigate changing market conditions.

One of the key benefits of a multicap strategy is that it removes the burden of market-cap allocation from investors. Determining when to allocate across segments can be challenging, particularly as market leadership often shifts across cycles. A multicap strategy addresses this by embedding this decision within a disciplined investment framework, freeing investors from having to make often difficult and timing-sensitive allocation calls.

From a long-term perspective, multicap funds can serve as a core equity allocation for investors, enabling investors to participate in India’s growth story through a combination of established market leaders and emerging businesses.

Many retail investors continue to favour mid- and small-caps despite recent volatility. Is the risk-reward equation still attractive in these segments?
While mid- and small-cap stocks are generally more exposed during periods of market volatility, the opportunity set within these segments has improved as valuations have moderated across several pockets of the market while business fundamentals have remained intact and even improved in several pockets.

Rather than looking at mid and small caps as segments, investors should focus on a disciplined investment framework. Selective opportunities continue to exist despite volatility, making active stock selection increasingly important in determining outcomes.

Which sectors currently offer the strongest earnings visibility, and where are you finding opportunities despite market volatility?
We continue to focus on sectors where earnings visibility remains relatively strong despite broader market volatility. Financials remain a key area of interest, supported by reasonable valuations, stable asset quality, improving credit growth, and a favorable funding environment, particularly within select NBFCs and mid-sized financial institutions.

Within industrials, we remain constructive on themes such as power transmission & distribution, renewable energy, and defence, where order books remain healthy and policy support continues to drive long-term demand. In the auto space, we continue to see opportunities linked to premium consumption trends, EV adoption, and select auto-component manufacturers benefiting from structural drivers such as exports, and regulatory and policy changes.

We are also positive on specialty chemicals, particularly businesses with strong contract manufacturing franchises, niche product portfolios, and long-term customer relationships.

If you had to allocate fresh money today, which market-cap segment would receive the highest allocation and why?
Our equity investment philosophy, QGaRP (Quality and Growth at a Reasonable Price), is market-cap agnostic and driven primarily by stock selection rather than segment-level calls. We seek to invest in businesses that combine high quality management, growth potential, and valuation comfort.

That said, our multicap strategy has historically maintained a growth-oriented tilt towards mid- and small-cap companies. With valuations having moderated across several pockets of the mid- and small-cap universe, we believe the environment has become more conducive in these segments for active stock selection.

As a result, while we continue to maintain a diversified allocation across market caps, we remain constructive on selectively identifying opportunities within the mid- and small-cap space where fundamentals, growth prospects, and valuations are aligned with our philosophy.

In the world of investing, few names command as much respect as Carl Icahn. Known for his bold bets, activist investing style, and ability to identify undervalued opportunities, Icahn has spent decades creating wealth by going against conventional market wisdom.

While markets, technologies, and industries change, many of Icahn’s core investing principles remain timeless. His approach combines deep business analysis, independent thinking, patience, and the courage to act when opportunities arise.

Here are nine key lessons investors can learn from the Wall Street veteran:

1. Think Like a Business Owner

Icahn believes investors should view stocks as ownership in a business rather than pieces of paper that fluctuate in price every day.

Before investing, one must understand how a company generates revenue, what competitive advantages it possesses, and whether its business model can remain relevant in the future. Investors who focus only on stock price movements often miss the bigger picture.2. Focus on Pricing Power
One of the most important characteristics of a strong business is its ability to raise prices without significantly hurting demand.Companies with strong brands, unique products, or dominant market positions often enjoy superior pricing power. Such businesses are generally better equipped to protect profitability during inflationary periods and economic uncertainty. Icahn considers pricing power a critical measure of a company’s long-term productivity and value creation ability.

3. Avoid the Two Cardinal Sins
According to Icahn, there are two major mistakes investors make:

Acting impulsively without thinking.

Failing to act when opportunity presents itself.

Successful investing requires a balance between patience and decisiveness. Emotional decisions often lead to losses, but excessive hesitation can result in missed opportunities. Investors must learn when to wait and when to move aggressively.

4. Stay Away from Herd Mentality
Market history is filled with examples of investors chasing popular themes only to suffer when the trend reverses.

Icahn has consistently advocated independent thinking. When everyone agrees on a particular investment narrative, the opportunity may already be fully priced in. Contrarian investing—buying when others are fearful and being cautious when optimism becomes excessive—has been a cornerstone of his philosophy.

5. Search for Undervalued Assets
At the heart of Icahn’s strategy lies value investing.

He looks for businesses whose market prices fail to reflect their intrinsic worth. These opportunities often emerge when investors become overly pessimistic about a company, sector, or market.

The goal is simple: buy quality assets at discounted prices and wait for the market to recognize their true value.

6. Bet Big on High-Conviction Ideas
Diversification has its place, but Icahn believes meaningful wealth is often created through concentrated investments in the best ideas.

When extensive research leads to strong conviction, investors should not be afraid to allocate capital decisively. Large gains typically come from a handful of exceptional investments rather than dozens of average ones. However, conviction must be backed by rigorous analysis, not emotion.

7. Balance Long-Term Investing with Active Opportunities
Icahn is known for his long-term investments, but he also recognizes the value of tactical opportunities.

Investors can simultaneously maintain a long-term portfolio while taking advantage of shorter-term situations when risk-reward dynamics become attractive. The key is understanding the objective behind every position and maintaining discipline throughout the process.

8. Stay Flexible and Adapt
Markets are constantly evolving. Economic conditions change, industries are disrupted, and new information emerges every day.

Icahn emphasizes that while having a plan is important, rigidly sticking to outdated assumptions can be costly. Investors should be willing to reassess their views when facts change and adapt accordingly. Flexibility often separates successful investors from those trapped by their own biases.

9. Enjoy the Process
For Icahn, investing is more than a pursuit of money. It is an intellectual challenge that involves research, strategy, and decision-making.

He has often suggested that investors should enjoy the process of discovering opportunities and understanding businesses. Those who genuinely love the craft are more likely to remain disciplined during difficult periods and continue learning throughout their investing journey.

Key Takeaway
Carl Icahn’s investing framework can be summarized in a few powerful ideas: think independently, focus on value, maintain conviction, and act decisively when opportunity appears. His career demonstrates that extraordinary returns often come from going against the crowd, identifying mispriced assets, and having the patience to wait for the market to recognize their worth.

For modern investors navigating volatile markets, these principles remain as relevant today as they were decades ago. While no strategy guarantees success, adopting Icahn’s emphasis on discipline, research, and independent thinking can help investors make more informed and potentially more rewarding decisions.