The US Federal Reserve slashed interest rates by 0.5 percentage points in an attempt to prevent an economic slowdown, but recent data shows strong job growth and solid retail sales, prompting doubts about the necessity of the rate cut. Despite a rising US GDP and stock market “melt-up,” sceptics warn of overvalued stocks and predict underwhelming returns over the next decade due to high valuations and historical trends. While some remain bullish in the short term, long-term valuation signals suggest US stocks may lag behind global counterparts and bonds in the coming years.
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Peter Hargreaves’ Blue Whale sells major tech stocks over AI concerns
Blue Whale Growth, managed by Stephen Yiu, has reduced exposure to major US tech companies like Microsoft due to concerns over their hefty investments in AI infrastructure. Yiu has aggressively sold shares in Microsoft, pushing it out of the top 10 holdings for the first time since 2017. Blue Whale has seen success, returning 24% this year, with a significant stake in Nvidia and concerns over the financial performances of other Magnificent Seven tech giants...
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