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Artificial Intelligence: Addressing Global Market Uncertainty

by 12 September 2023One Comment

Artificial intelligence: Addressing Global Market Uncertainty

Macroeconomic uncertainty is currently testing global markets. Recent economic indicators, such as the overheating U.S. job market and volatility in oil prices, have created an adverse environment for investors. This situation is limiting growth and making investors more cautious about taking risks.

The Importance of 'Good Stories' in an Adverse Market

In this atmosphere of economic chaos, it is no longer enough for companies to just have “good fundamentals”. What really matters is the 'good story' that a company is able to tell. For example, in the healthcare sector, recent successes in treating diabetes and obesity have led to a significant increase in the value of European pharmaceutical companies.

The Rise of Electric Vehicles and the Impact on the Green Future

Another area of growth and optimism is the electric vehicle (EV) sector in China. EV sales are growing rapidly, and innovations from both new and traditional automakers are driving a transition to a more sustainable future. This shows that AI is not the only “super-growth story” taking place in the global market.

Caution and Opportunity: The Strategies of Long-Term Investors

In this period of uncertainty, investors are looking for more thematic solutions, anchored by solid fundamentals and good stories. However, it is crucial to be cautious and not be guided solely by optimism or temporary trends. When an investment aligns with sustainable themes and offers the chance to invest in high-quality companies at attractive valuations, then there are real opportunities for long-term investors.

Summary: Balance between Hype and Fundamentals

In a world where artificial intelligence receives much of the attention, it is critical to recognize that there are other areas of growth and opportunity. In times of economic instability, caution is a must and investors' approach must be more balanced, weighing both “good stories” and solid fundamentals. By keeping these principles in mind, investors can navigate the turbulent waters of the global market with greater confidence.

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