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Important points
The S&P 500 and Nasdaq had their best month since 2020 in April, with AI trading driving gains in tech stocks. In the rest of the world, most global stock markets were closed on Friday for the Labor Day holiday. In Asia, there was no trade with Hong Kong, mainland China, South Korea, Taiwan, India, or all of Southeast Asia. Here are four investment strategies that can help you cut through the noise, as heard from CNBC’s London studio on Friday. Joachim Clement, head of long-term equity strategy at Panmure Liberum, believes the bond market has overshot and that interest rates are too high in terms of long-term bond yields. He believes that creates opportunities for long-term holdings such as utilities and real estate. Software’s Clement went on to say that while the AI boom will continue, he expects energy and chip prices to rise and eventually catch up with hyperscalers. “I think the better opportunities at the moment are in the software space and in companies like Apple that sell hardware that doesn’t really rely too much on capital investment,” he said.Japanese stocks traded volatile amid rumors that authorities had intervened in the country’s foreign exchange market to support the currency. Chris Igo, CIO of core investments at BNP Paribas Asset Management, sees Japanese stocks as attractive, citing developments in technology, industrials and robotics. Renewable energy Mr. Igo is also enthusiastic about renewable energy, citing huge demand for electricity from the AI trade and the Middle East conflict for this year’s rebound in stock prices. “We need to diversify our energy sources, and if you look at European countries, the share of renewable energy in power generation is increasing.”
