Wealth Managers Bet on AI Despite Market Volatility

Arun Sai, senior multi-asset strategist at Pictet Asset Management, remains overweight on equities, citing that AI-driven earnings are now permeating sectors beyond technology, including industrials, utilities, and infrastructure. Although he holds a neutral stance on US stocks due to demanding valuations—noting that 70 percent of US earnings growth currently stems from a handful of mega-cap firms—he remains bullish on emerging markets. Sai projects these regions will deliver 56 percent earnings growth this year, more than doubling the pace of their developed peers.

Contrasting this view, Adrien Roure of Indosuez Wealth Management maintains a constructive outlook on US equities, advocating for diversification through small and mid-cap stocks to capture gains from a resilient economy. Roure highlights that while the semiconductor cycle has triggered a localized correction in Taiwan and South Korea, the fundamentals in these regions remain robust. He views any short-term pullbacks as potential entry points for medium-term investors. Regarding fixed income, both managers express caution; Sai has upgraded gold to overweight as real interest rates soften, while Roure favors short-dated maturities in the euro area to navigate the uncertainties of global inflation and fiscal policy.