If other sectors perform poorly due to inflation and tariffs, IT companies may experience pain from postponed or reduced software renewals.
"if their companies let's say something like an auto or something like any other sector right if they are not able to perform well they may postpone renewals or they may cut down on renewals for IT softwares and that is the reason why it may still feel the pain right now."
The speaker believes Trump will not completely roll back tariffs but will negotiate, reducing duties and ensuring not all countries are punished severely.
"My view is that he won't roll back for anyone and everyone but yes I think he would come down to the negotiation table. he would reduce the duties uh and he would want to ensure that not all countries are punished as badly as as we get the look and feel right now."
A potential further downside of 1000 points from the current level is possible, meaning deployment of 1/5th of funds might be considered if one is prepared for this possibility.
"be very well prepared that another thousand points down from here is possible. If you're okay with that then maybe 1/5 does make sense"
