“Markets are shifting from expectations of a quick resolution to a renewed crisis escalation, with the Strait of Hormuz still disrupted and inflation and growth risks in focus. In this environment, we favour long-term convictions, exploring areas with strong earnings and fundamentals.”
- The S&P 500 hit an all-time high this week, with the longest-ever advance in semiconductors.
- The S&P 500 companies reporting first-quarter results have beaten estimates so far, providing a fundamental backstop to the market.
- The Tech and AI theme is gaining traction in the US, while strategic autonomy supports Europe and demand for natural resources favours Latin America.
US stocks climbed to a new record this week, supported by several factors. Firstly, as investors look for a swift resolution of the Iran crisis, strong corporate earnings boosted confidence, with 80% of S&P 500 companies that have reported first-quarter results having beaten estimates so far. At sectoral level, technology has regained leadership, with the Philadelphia Semiconductor Index posting a notably strong performance. This has reinforced optimism around the sector’s growth and, more generally, around the AI theme.
You can now read the full whitepaper at the link below
