Shares of AI-focused companies will be a major driver of returns for developed markets in a tough economic environment, BlackRock Investment Institute said, citing a current rally that is concentrated in a handful of technology stocks.
"S&P 500 gains have become increasingly concentrated in a handful of tech stocks, surpassing levels seen in the 2000s tech boom," BlackRock Investment Institute's team wrote in a mid-year outlook note. "We think this unusual equity market shows a mega force like AI can be a big driver of returns even when the macro environment is not your friend," it said.It also upgraded long-term government bonds of the euro region and the UK to neutral, and said it preferred short-dated U.S. Treasuries, mortgage-backed securities and high-grade credit.
"We think the current pricing of future euro area inflation above future U.S. inflation is unlikely to pan out given more aggressive European Central Bank rate hikes," the institute said, while downgrading the inflation-linked bonds of euro area.
Canada Canada Latest News, Canada Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Saudi investment in tennis won't replicate golf's woes: TileyAustralian Open chief Craig Tiley believes any Saudi investment in tennis is unlikely to have the same impact as the country's disruptive entry into golf because talks are focused on bolstering the current structures of the game.ATP Chairman Andrea Gaudenzi told the Financial Times last week that he had h
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »