Enablers or beneficiaries?

Which are better?

When investing in high tech, which comes with the promise of high returns, identifying enablers and beneficiaries is important.

AI, or artificial intelligence, makes this apparent. Enablers are those companies who enable the technology, in this case, AI. They include NVIDIA, which produces the chips needed to run AI, and cloud computing and software service providers.

Then we have the beneficiaries, or those companies who use AI to increase productivity and introduce innovations across a wide gamut of industries. These include companies such as RELX, formerly Reed Elsevier, who have the data needed to feed into the ravenous maw of AI tools to come up with something useful or revolutionary.

Understanding these enablers and beneficiaries can help you make better investment decisions with your tech portfolio. In our story "Navigating the Tech Sector: High valuations with higher potential?", our analysts offer some ways to think about the nascent opportunities in tech.

In our second story titled "Technical Analysis: 'Higher-for-longer' reality spooks markets", we offer something for those who like to hunt for patterns in the trends and tease out insights from data. If you are into technical analysis, you may have noticed the "head and shoulders" pattern that recently appeared in the S&P 500. There is an opportune time to re-enter the market, but be prepared in case of bad news.

We balance the cerebral stuff with our third story, which is about power casual dressing. If you want a casual look that communicates competence and inspires respect at the same time, we have some tips for you.

Please don't forget to bookmark our website, www.wealthinsights.ph. Check out our site for the latest investment insights delivered daily. If you're a Metrobank client, you can have access to our top investment picks from our investment experts.

You're in good hands.

Metrobank Wealth Insights Team

Navigating the Tech Sector: High valuations with higher potential? 

Market exuberance resulting from the advent of generative artificial intelligence (GenAI) has pushed tech stocks to astronomical valuations. The “Magnificent Seven” – Apple, Microsoft, NVIDIA, Amazon, Alphabet, Tesla, and Meta – accounting for about 28% of the S&P500, have been propelling US equities with a staggering average year-to-date return of 104% as of September 20, 2023.

This has led to concerns about concentration risk and overblown valuations becoming a focal point in the markets. Interestingly, some global investment managers believe that there is more value to gain from this seemingly expensive sector.

Read more: Navigating the Tech Sector: High valuations with higher potential?

Technical Analysis: “Higher-for-longer” reality spooks markets

In the Federal Open Market Committee (FOMC) meeting recently, the US Fed left rates unchanged. However, it signaled a higher for longer stance and that it is prepared to tighten further, or increase interest rates, if appropriate. Basically, a resilient US economy would result in further tightening.

Last year, markets were optimistic about a Fed pivot in 2023. The equity markets rallied on hope and optimism on policy easing, hence the mantra “bad economic news, is good news for markets.” Now that the reality of the “higher for longer” is here, the scenario of another hike startled markets and triggered the recent selling.

Read more: Technical Analysis: “Higher-for-longer” reality spooks markets

Everyday outfits for the office: A guide to power casual dressing

A casual look has been associated with something that is simple. But with fashion evolving as time passes by, casual can be something low-key yet stylish and chic.

With more workplaces embracing looser dress codes, the casual style is becoming more familiar. This option lets a person feel more comfortable at the office without feeling under- or over-dressed.

Read more: Everyday outfits for the office: A guide to power casual dressing

If you enjoyed our newsletter, just click subscribe so you don't miss our weekly releases.

Check out our website, too: www.wealthinsights.ph