Investors have been eagerly embracing artificial intelligence (AI) in the technology industry, but perhaps they shouldn’t be focusing all of their attention on it. According to Steven Wieting, chief investment strategist at Citi Global Wealth, there are several other tech opportunities that investors should be taking advantage of.
In an interview with Insider, Wieting suggested investors look beyond AI to the potential market leaders that might come out of the current tech selloff. Wieting also explained why investors should stick to a “growth at a reasonable pace” strategy. This means focusing on high-quality companies with strong earnings and dividend growth potential, as well as avoiding unprofitable tech stocks that remain down 70%.
Besides AI, Wieting identified three areas in particular that investors should be focusing on. Firstly, he suggested adding cybersecurity to the watchlist. AI may have revolutionized many industries, but it has also smartened up cybercrime. As a result, protecting networks has become even more essential, making cybersecurity investment increasingly important.
Secondly, Wieting said investors should not overlook semiconductor equipment makers. Although the sector is likely to remain volatile, demand for semiconductor spending continues to remain strong. Lastly, Wieting advised investors to pay attention to retailers that may be benefiting from the AI revolution. For example, as global supply chains reform due to the Covid-19 pandemic, retail distributors could be offered major opportunities.
Besides tech stocks, Wieting also pointed to fixed income assets as a source of potential growth. He also suggested small-cap tech and biotech stocks, as well as ex-China Asian markets like Japan, could provide interesting opportunities for investors due to the cheapness of the assets, even if markets may not take a smooth path upwards.
Citi Global Wealth is a global financial institution that offers a wide range of products and services, including wealth management, private banking, and investment banking. It has a presence in over 95 countries and offers clients access to a global network and range of expertise, knowledge, and specialties.
Steven Wieting has been the chief investment strategist for Citi Global Wealth for the past five years. He is experienced in the areas of portfolio management and asset allocation, providing expertise on growth at a reasonable pace strategies. He has contributed to multiple research pieces and held many positions of leadership within the financial services and investment industries.
