Bloomberg News Auto Reporter Keith Naughton discusses EV makers aiming for a $25,000 car in the US. Will Wade talks about Bill Gates investing in nuclear power. Google's AI evolution and role in AI products are highlighted. The Fed's cutting cycle and Gen Z transitioning to green jobs are explored. Wells Fargo's Global Investment Strategy Head shares insights on US equities and market trends.
Bill Gates ready to invest billions in nuclear power.
Gen Zers lack skills for transitioning to green jobs.
Deep dives
Preference for US Equities within Specific Sectors
The Wells Fargo Investment Institute favors US equities over international markets, particularly large caps over mid and small caps. They show a preference for sectors like industrials, materials, healthcare, and energy due to their long-term growth prospects and relative valuation attractiveness.
Selective Approach to High-flying Technology Stocks
While acknowledging the significance of technology and communication sectors, Wells Fargo takes a neutral stance towards them due to concerns about overvaluation. They caution against high-flying tech stocks, emphasizing that disruptive technology may be overestimated in the short run.
Evaluating the Rate Environment and Fed's Approach
Wells Fargo expects a couple of rate cuts this year and possibly more next year. They note the balance in the economy between positive and negative indicators, suggesting that the Fed can afford to wait before making any significant rate adjustments.
Focus on Sectors Beyond High Valuations
Wells Fargo highlights a strategic emphasis on sectors like industrials, materials, healthcare, and energy that offer strong value opportunities and align with long-term economic trends. They aim to diversify investment holdings beyond high-valued tech stocks.
Consideration of Consumer Spending and Liquidity
The outlook considers consumer spending patterns and liquidity dynamics influenced by Treasury operations, emphasizing the importance of monitoring cash flows and market liquidity to gauge investor behavior and asset performance.
Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg News Auto Reporter Keith Naughton shares his insight on EV makers targeting a $25,000 car for US drivers. Bloomberg News Power and Renewable Energy Editor Will Wade discusses Bill Gates saying he’s ready to put billions into nuclear power. Businessweek Technology Editor Joshua Brustein provides the details of the Businessweek story Google DeepMind Shifts From Research Lab to AI Product Factory. Frances Donald, Global Chief Economist for Manulife Investment Management, breaks down the total magnitude of the Fed cutting cycle. Sue Duke, VP of Global Policy at LinkedIn, talks about Gen Zers transitioning into green jobs but lacking the right skills. And we Drive to the Close with Paul Christopher, Head of Global Investment Strategy at Wells Fargo Investment Institute. Hosts: Carol Massar and Tim Stenovec. Producer: Paul Brennan.