The Iran conflict may help Asian technology shares further outperform their consumer peers, as concerns rise that the war’s inflationary impact will outweigh its damage on artificial intelligence supply chains. A gauge of Asian tech shares has gained over 19% this year, while its consumer discretionary counterpart has fallen almost 7%. Both of them have lost more than 9% since the war began. Money...
The Iran conflict may help Asian technology shares further outperform their consumer peers, as concerns rise that the war’s inflationary impact will outweigh its damage on artificial intelligence supply chains. A gauge of Asian tech shares has gained over 19% this year, while its consumer discretionary counterpart has fallen almost 7%. Both of them have lost more than 9% since the war began. Money managers expect the chasm to widen further on wagers that geopolitical tensions won’t stymie the world’s artificial-intelligence buildout, though they’ll crimp household spending. “We’re seeing foreign capital flows be directed in a more concentrated manner toward AI-linked sectors compared to consumer sectors in Asia,” a trend that may intensify over the coming year, said David Chao , global market strategist at Invesco Asset Management. Cyclical shares are likely to attract a higher risk premium, pointing to a bifurcation between AI-related stocks and those tied to “more real economy sectors,” he added. Tech stocks are the top gainers in a key Asian equities benchmark this year, boosted by AI beneficiaries such as chipmakers Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co. Meantime, consumer shares have lagged amid concerns over inflationary pressures, with households already grappling with higher energy bills. Indian food ordering firm Swiggy Ltd. and travel retailer China Tourism Group Duty Free Corp. are among the sector’s worst performers. The divide is poised to deepen as the war continues because AI investment remains a structural theme, said Vey-Sern Ling , managing director at Union Bancaire Privee. Though the chip producers won’t be immune to selloffs, “they will see far less demand erosion” than consumer firms, said Ling. For BNP Paribas, many clients are positive on memory chips’ cycle but more cautious outside tech, especially for South Korean names, William Bratton , the firm’s head of cash equity research for APAC, wrote in a note. That st...
The stock market sometimes punishes both deserving and undeserving companies during periods of uncertainty, creating buying opportunities for long-term investors willing to sift through the beaten-down stocks to find the high-quality companies that have been oversold. Year to date, shares of financial data and ratings specialist Moody's (NYSE: MCO) and swimming pool supplier Pool Corp (NASDAQ: POO...
The stock market sometimes punishes both deserving and undeserving companies during periods of uncertainty, creating buying opportunities for long-term investors willing to sift through the beaten-down stocks to find the high-quality companies that have been oversold. Year to date, shares of financial data and ratings specialist Moody's (NYSE: MCO) and swimming pool supplier Pool Corp (NASDAQ: POOL) are down sharply, falling 16% and 11%, respectively. But a closer look at the fundamentals of both businesses suggests these pullbacks might be an overreaction. Both companies operate incredibly durable models, generate substantial cash flow, and have a long history of returning capital to shareholders through consistently growing dividends. For income-focused investors looking to buy the dip, here is why these two oversold dividend stocks are worth a closer look today. Continue reading
Getty Images At a glance Performance The Portfolio returned 1.21% (gross) and the Bloomberg US Aggregate Bond Index returned 1.10%. Contributors/detractors Overall yield curve positioning contributed, while our spread risk allocation detracted. Outlook A resilient economy, artificial intelligence (AI)-driven investment, and anticipated Fed easing create a favorable backdrop for fixed income in 202...
Getty Images At a glance Performance The Portfolio returned 1.21% (gross) and the Bloomberg US Aggregate Bond Index returned 1.10%. Contributors/detractors Overall yield curve positioning contributed, while our spread risk allocation detracted. Outlook A resilient economy, artificial intelligence (AI)-driven investment, and anticipated Fed easing create a favorable backdrop for fixed income in 2026. Active, diversified strategies focused on carry and risk-adjusted returns remain essential, in our view. Investment environment The U.S. fixed income market delivered strong positive quarterly returns, capping off the best calendar year of performance since 2020. Short-term Treasury yields rallied, helping to drive positive returns and a steeper yield curve. High yield outperformed U.S. Treasuries and investment-grade (IG) corporates. In December, the Federal Reserve (Fed) cut interest rates by 25 basis points (bps) for a third consecutive meeting in response to a weaker jobs market, with the U.S. unemployment rate hitting a four-year high of 4.6% in November. Other data releases were more positive, with inflation dipping below expectations in November and third-quarter gross domestic product (GDP) growth that surprised on the upside. Despite policymakers indicating that they anticipate one more cut in 2026, futures markets are pricing in an additional two to three cuts in 2026. Speculation also continued to build around who would replace Fed Chair Jerome Powell when his term expires in May, and the degree to which their appointment might signal a shift in the central bank's traditional operational independence. The U.S. 10-year Treasury yield ended the quarter two bps higher, at 4.17%. IG corporate spreads widened four bps, to 78 bps, while high-yield spreads were virtually unchanged, at 266 bps, as investor sentiment remained upbeat. Portfolio review Our positioning on the short end of the yield curve contributed as the curve steepened, with short-term Treasury yields ...
imaginima/iStock via Getty Images Back near the end of last year, I decided to upgrade CoreWeave, Inc. ( CRWV ) from a buy rating to a strong buy. While the stock plunged, the company experienced exceptional levels of demand. Furthermore, the long term growth prospects were still intact, and the valuation had contracted. Therefore, I viewed the stock's chance of outperformance as high. While the b...
imaginima/iStock via Getty Images Back near the end of last year, I decided to upgrade CoreWeave, Inc. ( CRWV ) from a buy rating to a strong buy. While the stock plunged, the company experienced exceptional levels of demand. Furthermore, the long term growth prospects were still intact, and the valuation had contracted. Therefore, I viewed the stock's chance of outperformance as high. While the below chart shows what seems to be modest gains since the publication of that article, in reality CoreWeave is now almost 30% above levels seen back then. Today, I will provide an update to see if my bull thesis needs adjusting. Seeking Alpha In the below analysis, it is shown that CoreWeave has a strong long term opportunity. Furthermore, while revenue growth continued to decelerate into Q4, huge backlog growth suggests unsatisfiable demand and helps to justify their CapEx. Even though expense control and debt load are risks, the dirt-cheap valuation shows that there is a good margin for error right now. Therefore, I have decided to maintain my strong buy rating on the stock. Growth Potential CoreWeave Q4 Presentation While CoreWeave is now one of the largest AI cloud names out there, it is important to recognize that their current financial numbers represent just the early stages of compute deployment. As you can see in the above map , they have a significant footprint in the U.S. and in Europe and currently have around 850 MW of active power. With some data centers reaching over a gigawatt of capacity in the world today, it is clear that the company has the potential to see high levels of growth in the coming years. While they have 3.1 GW in contracted power lined up, investors need to keep in mind that the results we are seeing now are just reflective of a fraction of their ultimate target capacity. Moving forward, as contracted power becomes active and the company decides to scale further, financial growth should follow if demand remains as solid as it is right now. Gro...
Baidu announced the resignation of independent director James Ding from the board and several key committees. Ding stepped down as chair of the compensation committee and member of the audit and corporate governance committees. The board has restructured committee memberships to fill these roles and maintain required governance functions. Baidu, listed on NasdaqGS:BIDU, is making this governance c...
Baidu announced the resignation of independent director James Ding from the board and several key committees. Ding stepped down as chair of the compensation committee and member of the audit and corporate governance committees. The board has restructured committee memberships to fill these roles and maintain required governance functions. Baidu, listed on NasdaqGS:BIDU, is making this governance change at a time when the stock trades at $112.53. Shares have seen an 18.0% gain over the past...
Li Auto (NasdaqGS:LI) has introduced a new US$1.0b share repurchase program following weaker recent operating updates, positioning the buyback and the upcoming Li L9 launch as central themes for investors. See our latest analysis for Li Auto. The new buyback and weaker Q1 guidance come after a mixed run for investors, with a 90 day share price return of 5.78% but a 1 year total shareholder return ...
Li Auto (NasdaqGS:LI) has introduced a new US$1.0b share repurchase program following weaker recent operating updates, positioning the buyback and the upcoming Li L9 launch as central themes for investors. See our latest analysis for Li Auto. The new buyback and weaker Q1 guidance come after a mixed run for investors, with a 90 day share price return of 5.78% but a 1 year total shareholder return decline of 31.84%, suggesting longer term momentum has faded even as short term moves turn more...
Owner of Book Punch store and three staff accused of selling copies of a biography of Jimmy Lai, a jailed pro-democracy activist and publisher Hong Kong police arrested a bookstore owner and three shopkeepers on Tuesday for allegedly selling “seditious” publications including a biography of jailed media tycoon Jimmy Lai , broadcaster TVB reported. The owner of the Book Punch store, Pong Yat-ming, ...
Owner of Book Punch store and three staff accused of selling copies of a biography of Jimmy Lai, a jailed pro-democracy activist and publisher Hong Kong police arrested a bookstore owner and three shopkeepers on Tuesday for allegedly selling “seditious” publications including a biography of jailed media tycoon Jimmy Lai , broadcaster TVB reported. The owner of the Book Punch store, Pong Yat-ming, and three staff were accused of selling copies of The Troublemaker, a biography of Lai by one of his former business directors, Mark Clifford, TVB reported. Continue reading...