Microsoft (NASDAQ: MSFT) has probably been the most consistently dominant tech company of the last 50 years. However, in the AI era, which Microsoft helped spark with its OpenAI partnership, Microsoft suddenly finds itself on the outside looking in. In less than five months, Microsoft stock has fallen by nearly a third, even as the tech giant has continued to deliver strong results. The Windows-ma...
Microsoft (NASDAQ: MSFT) has probably been the most consistently dominant tech company of the last 50 years. However, in the AI era, which Microsoft helped spark with its OpenAI partnership, Microsoft suddenly finds itself on the outside looking in. In less than five months, Microsoft stock has fallen by nearly a third, even as the tech giant has continued to deliver strong results. The Windows-maker has gotten swept up in broader concerns about the AI threat on enterprise software, as virtually the entire software sector has fallen from Anthropic's rollout of new disruptive agents. There have also been anecdotal reports about companies replacing traditional enterprise software programs with custom tools created with AI, often known as vibecoding. Continue reading
Ren Yuzhong Beijing’s top prosecutor said a former senior Peking University official has been indicted on bribery charges, the latest in a widening anti-graft campaign that has ensnared a growing number of centrally managed cadres. The Supreme People’s Procuratorate said Wednesday that Ren Yuzhong, the university’s former Communist Party committee standing member and vice president, was charged af...
Ren Yuzhong Beijing’s top prosecutor said a former senior Peking University official has been indicted on bribery charges, the latest in a widening anti-graft campaign that has ensnared a growing number of centrally managed cadres. The Supreme People’s Procuratorate said Wednesday that Ren Yuzhong, the university’s former Communist Party committee standing member and vice president, was charged after an investigation by the National Supervisory Commission. The case was designated to prosecutors in Liaoning, who approved his arrest on suspicion of taking bribes, and the procuratorate in Dandong has now filed the indictment with a local intermediate court.
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 ...