James Flintoft

Strong performance from equities playing into the AI supply chain continues across the US and Emerging Markets, bringing with it rising concentration risk. We're now seeing valuation opportunities in US sectors that are complementary to portfolio diversification. Health Care, Utilities and Energy sectors all have the potential to benefit from the real-world roll-out of AI, alongside several other positive catalysts on the horizon. For example, a weak oil price looks symptomatic of abundant supply and gives little acknowledgement to rising geopolitical risks, nor the potential for an upswing in economic growth. Meanwhile bond markets are rejoicing in the cooling of inflation and rate cuts, however we see the long-term inflation outlook as vulnerable and real yields in the US and UK as good value.

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