Morgan Asset Management: Still bullish on tech stocks in the next 2-3 years, European stock markets can serve as a diversification investment foothold
Morgan Asset Management's Chief Market Strategist for the Asia-Pacific region, Xu Changtai, believes that in stock investments, he prefers large-cap stocks with positive profit prospects. He is cautiously optimistic about AI-related concept stocks and remains bullish on technology stocks for the next 2-3 years. In addition, attention should also be paid to finance, healthcare, and non-essential consumer goods. In terms of stock allocation, the scope should be broadened. In addition to being optimistic about US stocks, the long-overlooked European stock market offers significantly discounted valuations compared to US stocks of the same kind. If there are concerns about the US presidential election, the European market can be seen as a diversification destination for investment. Xu Changtai expects that the Japanese yen exchange rate has almost bottomed out. The significance of breaking away from the negative interest rate policy earlier was greater than actual. The Bank of Japan may have room to raise interest rates or reduce bond purchases in October this year. If combined with the Fed's interest rate cuts, it will be beneficial for the yen to strengthen. It is also advisable to pay attention to the Japanese stock market. Regarding the mainland China and Hong Kong stock markets, Xu Changtai pointed out that the domestic real estate inventory still needs time to digest, and he expects the Chinese economy to continue to be in a consolidation phase. He believes that investors are not willing to invest long-term in e-commerce and other internet sectors. In the future, there still needs to be several quarters of stable profit growth to attract fund interest, reiterating a preference for high-yield stocks
According to the information from the Wise Finance APP, Morgan Asset Management's Chief Market Strategist for the Asia-Pacific region, Xu Changtai, believes that he prefers stocks with large market capitalization for stock investments, with positive profit prospects. He is cautiously optimistic about AI-related concept stocks and remains bullish on technology stocks for the next 2-3 years. In addition, attention should also be paid to finance, healthcare, and non-essential consumer goods. In terms of stock allocation, the scope should be broadened. In addition to being optimistic about US stocks, the European stock market has been long overlooked. Similar stocks in Europe are significantly undervalued compared to US stocks. If there are concerns about the US presidential election, the European market can be seen as a diversification investment destination.
Xu Changtai expects that the yen exchange rate has almost bottomed out. The significance of breaking away from the negative interest rate policy earlier is greater than actual. The Bank of Japan may have room to raise interest rates or reduce bond purchases in October this year. If combined with the Fed's interest rate cuts, it will be beneficial for the yen to strengthen. It is also advisable to pay attention to the Japanese stock market.
Regarding the mainland and Hong Kong stock markets, Xu Changtai pointed out that the inventory of domestic real estate still needs time to digest, and it is expected that the Chinese economy will continue to be in a consolidation period. He believes that investors are not willing to invest in e-commerce and other Internet sectors for the long term. In the future, there still needs to be several quarters of stable profit growth to attract fund interest, reiterating a preference for high-yield stocks