U.S. stocks rose an average of 15% in the year the U.S. President seeks re-election. AI, information security and cloud are expected to continue to hit highs this year.

Past experience shows that U.S. stocks rose by an average of 15% in the year when a U.S. president seeks re-election, which means that growth in returns can be expected. The Schroders investment team pointed out that the stock price returns since September 2023 and the trend of giant stocks have diverged. In the future, they are optimistic about theme stocks such as AI, information security, and cloud demand, which are expected to continue their good performance.

Past experience shows that the average U.S. stock market rises by 15% in the year when the U.S. president seeks re-election, which means that the return rate can be expected to increase.
The Schroder investment team pointed out that the stock price return trend of giant stocks since September 2023 has diverged. In the future, they are optimistic that theme stocks such as AI, information security, and cloud demand are expected to continue their good performance.
The global stock market has experienced thunderous joy in 2023. After AI investment, many investors are worried about this year\’s stock market performance. The Schroder investment team said that judging from historical data, investing in the year after the stock market has risen is an example of outstanding annual returns. All.
Since 2002, if we take three years as a group, the return performance of the next year when the global stock index rose sharply has been as high as 5 times. Therefore, it can be inferred that even in 2023 (last year), the global stock index rose by 22.8% this year. It is expected to be viewed positively.
However, in the face of the ineffective anti-inflation effect in the United States, interest rate cuts and delays have caused investors to gradually lose confidence in various investments in the stock, foreign exchange and bond markets. Under such circumstances, what assets can be invested in can give investors a little peace of mind. Schroders (Environment) ) Cai Wanting, product manager of Global Income Growth Fund, made three observations to support the continuation of the bull market.
First of all, fundamentals support that global corporate profits are expected to grow by about 10% in 2024. Positive data supports the performance of stocks and bonds. Furthermore, the nature of this year\’s interest rate cut is a precautionary interest rate cut rather than a crisis-style interest rate cut. Preventive interest rate cuts are to avoid too tight a financial environment. Based on historical experience. Precautionary slow rate cuts are good for the stock and bond market outlook. The third US election year is usually good for stock market performance. Past experience shows that US stocks rose by an average of 15% in the year when the US president seeks re-election, which means that return growth is expected.
Advantages of the fund\’s investment group: The proportion of convertible bonds + stocks is about 70% in the long term. It is optimistic about AI, information security, and cloud themes. Cai Wanting further explained that the stock market is supported and the bond market has performed well. The average yield of global non-investment grade bonds in the fund\’s investment portfolio is 7.2%. Emerging The local bonds in the market reached 10.5%. What is more special is that catastrophe bonds contributed 11.9%. The yield is still bullish in response to risky assets. The current investment team plans to allocate about 70% of the total allocation to convertible bonds and stocks.
In terms of theme stock selection, Cai Wanting explained that considering the stock price return trend since September 2023, the trend of giant stocks has diverged. Not all the seven technology giants can perform outstandingly this year. The Schroders investment team is optimistic about giant stocks such as AI, information security, and cloud demand. After rising, the next stock selection must be driven by themes. Only those with AI or cloud themes are expected to continue to perform well. The technology sub-industries of this fund’s investment group include semiconductor equipment, chip design, manufacturing and information security software, and cloud computing related companies* *.
In summary, the market is unpredictable. It is recommended that the global layout be dynamically adjusted not only in North America but also to include investment opportunities in Europe and emerging markets so as not to miss the opportunity of market rotation. Allocate 30% to 40% of shares at the same time through the Schroders (Global) Global Income Growth Fund. Convertible bonds are 20% of the income-generating assets. Faced with the possibility that the market will continue to fluctuate, it can seize the momentum to defend and accumulate interest. It can be both offensive and defensive.

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