Tag: Smallcap stocks

Stocks soar as Fed plans rate cuts & AI sparks tech boom. Stay tuned for key insights on market movements this week!

SMID stocks set to benefit from looser Q4 financial conditions - ClearBridge Select Strategy outperforms benchmark with balanced portfolio approach.

Retail investors are flocking back to the stock market, drawn by the hype around AI, with Nvidia taking centre stage. The US debt ceiling resolution further encourages investors, with a three-month high of $1.36bn inflow seen over the last week. Economic data, bullish sentiment, blue-chip, and small-cap stock purchases are all positive signs. The AI trend shows no sign of slowing, and with the retail influx yet to reach concerning levels, the outlook looks positive, despite fears of an impending recession.

Bank of America is encouraging investors to consider AI as a new trend in their investment strategy. Savita Subramanian, Head of US Equity and Quantitative Strategy, highlights productivity and increased focus on capex cycle on automation, reshoring, and green initiatives as a potential boost for firms with higher capital spending. Her team upgraded the tech sector to Market weight while downgrading healthcare, communication services, and consumer staples stocks. For investors, it's recommended to invest in value lines within mid-cap and small-cap stocks.