Morgan Asset Management's Zhou Huantong: The stock market will continue to remain stable this year, and the valuation of AH technology stocks remains attractive.
Zhitong App has learned that Morgan Asset Management's global market strategist, Zhou Huantong, recently wrote an article stating that the decline in US bond yields, coupled with recent policy news such as the "white list" for real estate developers, has indeed stimulated the market. It is expected that more real estate-related support policies will be introduced at next month's central economic work conference, which will boost investors' confidence in the mainland and Hong Kong stock markets. Zhou Huantong believes that the stock market will only have a clearer direction next year, and for the remainder of this year, it will continue to maintain a stable trend. Although the momentum of the US economy may slow down next year, data shows that there will still be slight growth in the economy, while inflation will slow down. The chances of a recession or a hard landing are small. It is expected that the Federal Reserve may consider cutting interest rates when the domestic gross domestic product (GDP) falls to the 2% level, and there will be a greater chance of interest rate cuts in the second half of next year.
Zhitong App has learned that Morgan Asset Management's global market strategist, Zhou Huantong, recently wrote an article stating that the decline in US bond yields, coupled with recent policy news such as the "white list" for real estate developers, has indeed stimulated the market. It is expected that more real estate-related support policies will be introduced at next month's central economic work conference, boosting investor confidence in the mainland and Hong Kong stock markets. Zhou Huantong believes that the stock market will only have a clearer direction next year, and for the remainder of this year, it will continue to maintain a stable trend.
Zhou Huantong also stated that although the momentum of the US economy may slow down next year, data shows that the economy will still experience slight growth, while inflation will slow down. The chances of a recession or a hard landing are not high. It is expected that the Federal Reserve may consider cutting interest rates when the domestic gross domestic product (GDP) falls to the 2% level, and there will be a greater chance of rate cuts in the second half of next year.
She believes that as many investors' regular funds mature and the environment for interest rate cuts approaches, there is an opportunity for funds to be transferred to high-yield stocks. High-yield stocks in mainland banks, energy, and other traditional industries are expected to perform well. She defines high-yield stocks as those with a dividend yield higher than 4%, and there are more than 250 companies in the Asia region that pay dividends higher than this benchmark, which helps investors improve portfolio defensiveness.
Regarding the prospects of technology stocks, she expects that the AI concept and anticipation of interest rate cuts will drive the sector's strength. In particular, AH technology stocks still have attractive valuations. The management of internet companies has reorganized their businesses in recent years, such as adjusting costs, and the uncertainties in mainland's regulation of the technology industry have significantly reduced, providing room for revaluation in the future.