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Global asset classes: Where’s the value?
Mads Pedersen, Founder & CIO, Human Edge Investment Technology joins CNBC Africa’s Godfrey Mutizwa for this discussion.
Wed, 03 Apr 2024 16:50:31 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Pedersen anticipates potential US rate cuts, expecting them to occur later next year rather than sooner.
- He maintains an overweight position in US equities, particularly in the technology and healthcare sectors due to strong earnings growth.
- Pedersen remains optimistic about the current positive story in US equities but acknowledges the need to stay agile in response to market changes and potential shifts in equity weight.
Global investors are constantly seeking where value lies and where to put their money in today's complex market environment. Mads Pedersen, Founder and CIO of Human Edge Investment Technology, recently shared his insights on CNBC Africa with regards to US rates, investment strategies, and the outlook for global asset classes. As the Federal Reserve considers potential rate cuts, Pedersen believes that while the market may expect cuts sooner, they will likely occur later next year. He highlighted the Fed's history of inconsistent forecasts and the importance of not betting against their direction. Despite this, Pedersen maintains an overweight position in US equities, particularly in technology and healthcare sectors. He emphasized the strong earnings growth in these sectors and sees good value in the US equity market for the time being. Looking ahead, he anticipates a potential 10% growth in earnings, which could further drive market performance. While acknowledging a possible shift in equity weight in the next three to six months, Pedersen remains optimistic about the current positive story in US equities. When asked about opportunities outside the US, Pedersen noted the potential for emerging markets, particularly if the Fed adopts a more accommodative stance. He highlighted the recent positive signs in the manufacturing sector and the impact on emerging markets, signaling a potential cyclical rebound. Overall, Pedersen's investment strategy reflects a focus on seizing value opportunities in global asset classes while remaining agile in response to market dynamics. As market conditions evolve, investors will continue to monitor key indicators and adjust their portfolios accordingly.
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