Indian Investor Strategies for a Turbulent Market: Focus on Structural Themes and Valuations

Manish Gunwani, a Bloomberg expert, suggests that investors should focus on structural themes for long-term stock picking. He highlights internet platforms, strong R&D, and financialization as key areas. He also advises against being overly fearful or greedy and recommends accumulating stocks for the next three to five years during the current sideways market movement. Gunwani's medium- to long-term view expects nominal GDP to grow around 10-11%, with a focus on domestic growth and global tepidness.

Manish Gunwani, a Bloomberg expert, has advised investors to focus on structural themes for long-term stock picking. According to Gunwani, key areas to concentrate on include internet platforms, strong research and development (R&D), and financialization. He also cautions against being overly fearful or greedy and recommends accumulating stocks for the next three to five years during the current sideways market movement.

Gunwani's medium- to long-term view expects nominal GDP to grow around 10-11%, with a focus on domestic growth and global tepidness. This perspective aligns with the current economic conditions, where the market is in a sideways movement, and investors are seeking stability and growth.

For investors interested in AI stocks, the Morningstar Global Next Generation Artificial Intelligence Index has shown strong performance, returning 18.90% year-to-date as of July 7, 2025, compared to 7.36% for the broad-based Morningstar US Market Index [3]. The index includes stocks like Alphabet (GOOGL), Taiwan Semiconductor Manufacturing (TSM), and Tencent Holdings (TCEHY), which are considered leaders in the AI space.

Vanguard is also making a significant shift in its ETF offerings by introducing actively managed ETFs that rely on fundamental stock picking. These new funds, expected to debut in the fourth quarter of 2025, include the Vanguard Wellington Dividend Growth Active ETF (VDIG), the Vanguard Wellington U.S. Growth Active ETF (VUSG), and the Vanguard Wellington U.S. Value Active ETF (VUSV) [2]. These ETFs will be managed by Wellington Management Company and will have higher expense ratios compared to Vanguard's passive ETFs.

Outfront Media Inc. (OUT), a leading provider of outdoor advertising space, has shown strong momentum with a Momentum Style Score of B and a Zacks Rank of #3 (Hold) [1]. The stock has gained 3.7% over the past one-week period and 13.5% over the last one-year period. The company's earnings performance has also been favorable, with an average earnings surprise of 6.4% and two analysts revising their earnings estimates higher in the last 60 days.

In conclusion, focusing on structural themes such as internet platforms, strong R&D, and financialization, while accumulating stocks for the long term, aligns with Manish Gunwani's advice. Investors should also consider the performance of AI stocks and the introduction of actively managed ETFs by Vanguard. As always, it is essential to conduct thorough research and consult with a financial advisor before making investment decisions.

References:
[1] https://finance.yahoo.com/news/momentum-investor-1-stock-could-135003691.html
[2] https://www.etf.com/sections/features/vanguards-first-stock-picking-etfs-come-its-highest-fees-yet
[3] https://global.morningstar.com/en-gb/stocks/best-ai-stocks-invest-now