Global Markets
Many U.S. investors and businesses are on tenterhooks ahead of an election result that may see dramatic changes in the tax and regulatory structures they must navigate. Of course, there are many opportunities in the U.S. that can prosper regardless of the election outcome, as they are linked to powerful secular technological themes. Any volatility surrounding the election, or disappointment in its results (which will be half the population no matter what happens), could afford investors an opportunity to buy these themes: business digitization, the cloud in all its manifestations, fintech, cybersecurity, advanced business communications and networking, 5G, big data, artificial intelligence, e-commerce, battery technology, green tech and transport, and so on — the “usual suspects.”
Of course, investors should remember that whatever happens with the executive and legislative branches will not disrupt the support of monetary authorities — and fiscal largesse now seems to be a bipartisan obsession, with differences only in the fine print.
As we have noted, the time is right for investors to remind themselves that there is a world beyond the U.S. markets. Though in relative terms, markets ex-U.S. have not kept up over the past decade, current events may be converging to create a period of outperformance for certain foreign markets. We believe China and India are particularly attractive — and within these, again, the favored themes mentioned above are also prominent. In India, in particular, the acceleration of e-commerce and fintech themes is noteworthy; we also like software, cybersecurity, medical technology, and pharmaceuticals. In China, we like e-commerce, software, distance education, cloud computing and storage, cybersecurity, medical technology and many of the same industries we favor in the U.S. E-commerce leaders in other parts of the developing world, such as Latin America, are also worth watching.
Thanks for listening; we welcome your calls and questions.
