Money manager John Davi is positioning for challenges tied to President-elect Donald Trump's tariff agenda.
Davi said helium worries the caller administration's policies could beryllium "very inflationary," truthful helium thinks it is important to take investments carefully.
"Small-cap industrials marque much consciousness than large-cap industrials," the Astoria Portfolio Advisors CEO told CNBC's "ETF Edge" this week.
Davi, who is besides the firm's main concern officer, expects the reddish expanse volition assistance propulsion a pro-growth, pro-domestic argumentation docket guardant that volition payment tiny caps.
It appears Wall Street agrees truthful far. Since the statesmanlike election, the Russell 2000 index, which tracks small-cap stocks, is up astir 4% arsenic of Friday's close.
Davi, whose steadfast has $1.9 cardinal successful assets nether management, besides likes staying home contempt the tariff risks.
"We're overweight the U.S. I deliberation that's the close playbook successful the adjacent fewer years until the midterms," added Davi. "We person 2 years of wherever helium [Trump] tin power a batch of the narrative."
But Davi plans to enactment distant from fixed income owed to challenges tied to the increasing fund deficit.
"Be cautious if you ain bonds for sure," said Davi.
Since the election, the benchmark 10-year Treasury yield is up 3% arsenic of Friday's close.
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