1. In its latest report, Standard Chartered Bank points out that despite facing high yields and geopolitical headwinds, strong earnings growth of 15-30% and the diffusion of AI investment into broader sectors such as finance and industry provide core support, and it still recommends an "overweight" position in equities in asset allocation.
2. In terms of regional allocation, it recommends overweighting US and Asian equities excluding Japan: US earnings revisions continue to rise; Asian earnings growth is leading globally, with Taiwan benefiting from its AI hardware supply chain advantages, Hong Kong stocks having valuation revaluation potential, and India driven by domestic demand.
3. In terms of sectors, it remains optimistic about the AI-driven technology and communications services sector. Furthermore, AI investment has brought a diffusion effect, with the US financial sector benefiting from increased M&A and financing activities, as well as the resilience of interest rate spreads in a high-interest-rate environment; therefore, it upgrades to an "overweight" position.
4. With the surge in electricity demand from AI and data centers, grid equipment manufacturers will enter a multi-year investment cycle, making them worthy of attention. Global high-dividend stocks are an opportunistic choice for hedging against volatility and locking in returns.
5. Regarding risks, every 25 basis point increase in real yields could depress valuations by 3-4%, but earnings growth can provide a buffer. Furthermore, seasonal volatility due to the November US election should be considered; it is advisable to look for opportunities to add to positions during market pullbacks.
