Businesses of all sizes are leveraging the explosion in demand for artificial intelligence.
The US has growth drivers that make it a strong market for investment opportunities.
We can’t predict the future, but we can prepare the portfolio for economic conditions.
An equity fund investment strategy includes staying abreast of AI and data demands, analyzing markets for potential long-term performance, and navigating the current macro environment.
Watch this video from Global Equities Fund Manager Andy Hall and Global Equities Deputy Fund Manager Emily Roberts.
AI is an important trend, and while the portfolio includes Microsoft and Amazon, it also provides exposure to lesser-known businesses that are benefiting from growing AI demand, like Broadcom. This firm offers a cheaper and more efficient version of proprietary customized chips to companies such as Meta and Google. Another company, Amphenol, provides connectors and interconnects, and about 20% of its business sells to the data center industry.
There are several reasons why the US has been and, we think, will remain a relatively good place to invest. It’s a big market, meaning businesses’ growth potential is greater, and investors aren’t paying a scarcity premium since there are many good companies. There’s a lot of liquidity in the market, and it’s a great culture of innovation. Also, there’s one language — one homogenous market — and standardized reporting, so companies don't have to translate the packaging into many languages and abide by a lot of regulations.
We manage portfolios from a top-down perspective. We try to avoid taking macro views or predicting anything, but we aim to be aware of different scenarios and risks and how they might impact us. Economic downturns, which are part and parcel of the investment cycle, can create opportunities. Therefore, should the market give us an opportunity as we observe companies, we'll be ready to capitalize on it.
Invesco Global Equity Strategy
Invesco Canada’s Global Equity Fund Manager Andy Hall and Emily Roberts describes some of the opportunities, risks, and challenges of investing in different global sectors.
Invesco Global Equities Investment Intelligence webinar: Investing in different global sectors
Invesco Canada’s Global Equity Fund Manager Andy Hall describes some of the opportunities, risks, and challenges of investing in different global sectors.
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