Goldman Sachs The Markets What’s the next tech trade?
6 snips
Nov 22, 2024 Explore how mega cap tech stocks have driven market growth in 2024 and the potential for new investment opportunities beyond the 'Magnificent 7'. Delve into the evolving landscape of AI investments and the importance of long-term strategies over quick returns. Discover how the software sector remains resilient amid economic challenges, with a focus on consumer earnings and inflation impacts. The conversation even takes a lighthearted turn with a fun prediction about a local basketball team's future success.
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Broadening Market Interest
- Mega-cap tech stocks' post-election performance is linked to excitement surrounding non-mega-cap tech companies.
- This suggests a broadening market interest beyond the dominant players.
Split Tech Economy
- The tech economy has been split between AI and non-AI sectors.
- The non-AI sector has been weak due to high interest rates and a weaker macro environment.
AI Investment Returns
- Significant investments in AI may not yield immediate returns.
- Early applications, especially AI agents in enterprise software, show promise.