Wealth Managers Bet on AI Beyond Tech Stocks

Arun Sai, senior multi-asset strategist at Pictet Asset Management, remains overweight on equities while keeping a neutral stance on bonds. He argues that AI-driven earnings growth is no longer confined to pure technology plays, providing a more stable foundation for broader market gains. Pictet forecasts that emerging markets—excluding China—will deliver the world's highest earnings growth this year at 56 percent, significantly outpacing developed nations. While Sai has upgraded gold to overweight due to central bank demand and easing real interest rates, he remains cautious regarding US equities, where high valuations and a 70 percent concentration of earnings growth in a few mega-cap stocks create potential vulnerability.

Adrien Roure, multi-asset portfolio manager at Indosuez Wealth Management, offers a more constructive outlook on US equities, favoring diversification through small and mid-cap stocks. He views the current semiconductor leadership in Taiwan and South Korea as a temporary period of heightened caution, suggesting that any short-term corrections could present entry opportunities for medium-term investors. Indosuez remains selective in Europe, favoring defense and supply chain security sectors, while maintaining a positive view on emerging market debt in local currencies. Both firms agree that while the initial AI rally may have stalled in July, the underlying investment cycle remains robust, provided that corporate earnings continue to meet market expectations.