Morgan Asset Management: Still bullish on tech stocks in the next 2-3 years, European stock markets can serve as a diversification investment foothold

Morgan Asset Management's Chief Market Strategist for the Asia-Pacific region, Xu Changtai, believes that in stock investments, he prefers large-cap stocks with positive profit prospects. He is cautiously optimistic about AI-related concept stocks and remains bullish on technology stocks for the next 2-3 years. In addition, attention should also be paid to finance, healthcare, and non-essential consumer goods. In terms of stock allocation, the scope should be broadened. In addition to being optimistic about US stocks, the long-overlooked European stock market offers significantly discounted valuations compared to US stocks of the same kind. If there are concerns about the US presidential election, the European market can be seen as a diversification destination for investment. Xu Changtai expects that the Japanese yen exchange rate has almost bottomed out. The significance of breaking away from the negative interest rate policy earlier was greater than actual. The Bank of Japan may have room to raise interest rates or reduce bond purchases in October this year. If combined with the Fed's interest rate cuts, it will be beneficial for the yen to strengthen. It is also advisable to pay attention to the Japanese stock market. Regarding the mainland China and Hong Kong stock markets, Xu Changtai pointed out that the domestic real estate inventory still needs time to digest, and he expects the Chinese economy to continue to be in a consolidation phase. He believes that investors are not willing to invest long-term in e-commerce and other internet sectors. In the future, there still needs to be several quarters of stable profit growth to attract fund interest, reiterating a preference for high-yield stocks