Expect Fed to not announce tapering immediately: Geosphere Capital

He further added, “They are going to wait and watch how this third wave of COVID plays out and whether the data takes a bit of a pause. There is a very important additional element to consider that the issuance of bonds by the US Treasury is expected to decline meaningfully towards the end of this year. So there is a possibility that Fed could time its taper in conjunction with it.”

On buying opportunity, Sanger said, “I feel very comfortable, whether we look at the oil signal, or we look at whether taper happens or not, taper is going to happen eventually, when the economy recovers therefore, I think that this dip is likely to prove to be another buying opportunity. I don't think after Delta variant, we have to keep worrying, there will be all other variants, but it sounds like the Delta variant is the most aggressive, most dangerous variant that has come along in this whole COVID wave.”

“It looks like if we look at the UK data, the delta variant impact peaked a few weeks ago, and the death rate in a highly vaccinated country remains very, very manageable. So I think people are going to learn to live with future variants without worrying about activity coming to a complete halt,” said Sanger.

On mega trillion-dollar infrastructure bill, Sanger said, “That would be another juice to the market, it would be another juice to money flowing through the economy and driving demand for different goods and services, and that is less infrastructure focus, that is more people support and other things that would put money into the economy on a sustained long-term basis. I think this would again drive potentially more fuel to the fire in terms of both consumer and business spending. Therefore, I think we are embarking on a cycle where government and private sector capex could be an important ingredient of the cycle, both globally and in India.”