USDJPY has already slipped from 163 to 154, and Tandon says the pair could descend to 145 in the coming 60 days—if the yen keeps gaining strength.—He points to the Fed’s hikes, a BOJ rate increase, and the resulting carry‑trade unwind as the engines driving this move.
Quant Mutual Fund, with $9.95 billion in assets for the April‑June 2026 period, has been sharpening its global‑versus‑domestic stance for months. The CIO’s emphasis on currency markets, fixed income and developed‑market yields has guided the fund’s allocation shifts.
Tandon warned that every tick the yen climbs makes it costlier to fund carry trades, and the resulting unwind will pressure developed‑market equity valuations. He added that 10‑year government bond yields in those markets are expected to climb further over the next one to two months, a trend he sees as structural rather than a blip.
On commodities, the CIO reiterated his earlier call that crude oil will trend down to $70 per barrel as weak demand data and the surge in renewable energy keep prices in check. He also noted a strategic increase in exposure to IT services, arguing that large enterprises still need AI‑tool implementation.
Tandon sees midcap and smallcap stocks consolidating after their April rally, but he does not view it as bearish. He highlighted power and pharma as the two long‑term themes that should stay on the radar, irrespective of global market headwinds or oil price swings.