Joachim Klement, Head of Strategy at Panmure Liberum believes there are opportunities in long-duration equities such as utilities and real estate.
Klement also says higher energy and chip prices will eventually catch up with hyperscalers.
Chris Iggo, CIO for Core Investments at BNP Paribas Asset Management sees Japanese equities as being attractive.
Iggo is also keen on renewable energy.
The S & P 500 and the Nasdaq posted their best month since 2020 in April, as tech stocks drove gains boosted by the AI trade. Across the rest of the world , the vast majority of global stock markets were closed Friday for the Labor Day holiday. In Asia there was no trade in Hong Kong or Mainland China, South Korea, Taiwan, India or across Southeast Asia. Here are four investment strategies we heard out of CNBC’s London studios Friday to help navigate the noise. Long-duration equities Joachim Klement, Head of Strategy at Panmure Liberum believes the bond market has overshot and that rates are too high when it comes to long-term bond yields. He believes that gives opportunities for long-duration equities such as utilities and real estate. The software space Klement goes on to argue that the AI boom will continue but sees higher energy and chip prices eventually catching up with hyperscalers. “I think the better opportunities at the moment are more in the software space and in names like Apple, which are selling hardware that isn’t really that much capex dependent”, he said Japanese equities The Japanese yen saw volatile trade amid rumors that authorities intervened in the country’s FX market in a bid to support the currency. Chris Iggo, CIO for Core Investments at BNP Paribas Asset Management sees Japanese equities as being attractive, citing developments in the technology, industrial and robotics sectors. Renewable energy Iggo is also keen on renewable energy, citing a recovery in stocks this year, driven by the massive demand for electricity coming from the AI trade, as well as the conflict in the Middle East. “We need to diversify energy sources. And if you look at any of the European countries, the share of renewables in the electricity generation is increasing.”
