BlackRock: AI remains one of the key investment themes, and is bullish on equity investment opportunities in markets such as China's stock market.
AInvestWednesday, Oct 16, 2024 8:30 pm ET
1min read
THRO --

BlackRock says it remains bullish on investment opportunities related to the AI theme, but will also make micro adjustments to portfolio allocation based on actual conditions. The broad winners in the AI construction phase will be the focus, as beneficiaries also exist outside the tech sector, such as in the energy and utility sectors. The investment in AI has just begun. However, the valuation fluctuation of AI stocks reflects the uncertainty of the future. A large amount of investment will flow into tangible assets and infrastructure and technology sectors in the future. The market capitalization of a major chipmaker has risen to US$3 trillion, and the sharp increase in market capitalization and stock price fluctuations reflect the huge investment expectations and uncertainties in the AI field. Be bullish on equity investment opportunities in the Chinese stock market and other global markets.

Chinese stock market

BlackRock raised its view on Chinese stock assets to moderately overweight on the positive policy signals. Chinese stocks are currently significantly discounted relative to developed market stocks, and the Chinese government's major fiscal stimulus will help attract investors. However, BlackRock will also be ready to adjust its allocation and will continue to observe the actual effect of the policy due to the structural challenges faced by the Chinese economy.

US stock market

BlackRock believes that the US stock market's rally will expand, with broad corporate earnings growth and a preference for high-quality assets leading to BlackRock's overall overweight US stocks. Be bullish on AI-related opportunities and overweight related sectors. The earnings of tech companies continue to exceed high expectations, leading to an increase in the valuation of companies benefiting from AI. The decline in inflation is expected to provide further support for industries with higher profit margins outside the tech sector.

Japanese stock market

BlackRock continues to overweight Japanese stocks but reduces the overweight. The more positive economic outlook and corporate reforms in Japan are driving the improvement in corporate earnings and shareholder returns. The risks are that the appreciation of the Japanese yen will drag on corporate earnings, and the policy signals of the Bank of Japan are ambiguous.

Indian stock market

Emerging market stocks are discounted relative to developed market stocks, and the valuation of Indian stocks is still reasonable in the long run. At the strategic allocation level, BlackRock is overweight emerging market stocks and believes that emerging markets such as India will benefit from opportunities brought about by disruptive trends.

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