Manulife Investment Management: Still optimistic about dollar assets, expects the dollar to remain strong in the short term
The outcome of the U.S. election is set, with former President Trump returning to the White House, the Republican Party regaining control of the Senate, and also likely to continue controlling the House of Representatives. In response, Colin Purdie, Chief Investment Officer of Manulife Investment Management's public market, stated at a press conference that he is optimistic about dollar assets, including U.S. stocks and small businesses, as he expects U.S. economic growth to remain strong. Even though the U.S. Federal Reserve has begun a rate-cutting cycle, U.S. interest rates are still higher than those of other major economies, and he estimates that the dollar will maintain its strength in the short term, while long-term trends will depend on future data. Additionally, Colin Purdie mentioned that Manulife Investment Management is also optimistic about the Japanese market, mainly because Japan has transitioned from deflation to inflation, and there is a trend towards normalizing monetary policy. Regarding sectors, Colin Purdie indicated that, aside from healthcare and financials, Manulife Investment Management is also optimistic about utility stocks and infrastructure stocks. He explained that as demand for artificial intelligence (AI) increases, the number of data centers will also rise, and it is expected that U.S. electricity demand will increase by 38% over the next 20 years, which will benefit the development of the lower-cost renewable energy industry. While utility stocks perform poorly when interest rates are high, their yields effectively increase when rates decline
According to the Zhitong Finance APP, the outcome of the U.S. election has been determined, with former President Trump returning to the White House, the Republican Party regaining control of the Senate, and also likely to continue controlling the House of Representatives. In response, Colin Purdie, Chief Investment Officer of Manulife Investment Management's public market, stated at a press conference that he is optimistic about dollar assets, including U.S. stocks and small businesses, as he expects U.S. economic growth to remain strong. Even though the U.S. Federal Reserve has begun a rate-cutting cycle, U.S. interest rates are still higher than those of other major economies, and he estimates that the dollar will maintain its strength in the short term, while long-term trends will depend on future data.
In addition, Colin Purdie mentioned that Manulife Investment Management is also optimistic about the Japanese market, primarily because Japan has transitioned from deflation to inflation, and there is a trend towards normalizing monetary policy.
Regarding sectors, Colin Purdie indicated that, aside from healthcare and financials, Manulife Investment Management is also optimistic about utility stocks and infrastructure stocks. He explained that with the increasing demand for artificial intelligence (AI), the number of data centers will also rise, and it is expected that U.S. electricity demand will increase by 38% over the next 20 years, which will benefit the development of the lower-cost renewable energy sector. While utility stocks perform poorly when interest rates are high, their yields effectively increase when interest rates decline