According to nearly half of CFOs in a CNBC survey, tech stocks have performed exceptionally well this year. This outperformance is likely to continue for the next six months.
Statista predicts that artificial intelligence will be a $1.0 billion market in the next 10 years.
These top executives cited consumer demand, regulations, and monetary policies as possible risks to their businesses, but remained bullish about the stock market. They expect further upside in the Dow Jones Industrial Average, which is already at a new record high.
Capex to continue despite interest rate cuts
The US Federal Reserve has lowered its key rate by 50 basis points this month, and announced another 50-bps rate cut by the end 2024.
Interest rate reductions usually lead to increased capital expenditures, as companies can borrow money at a lower cost for growth and expansion.
Only 7.0% of respondents to CNBC’s CFO Council third-quarter survey predicted higher CAPEX in the future.
More than 25% of respondents said that building new factories would be their top priority, while “tech investments not” related to AI were the second most popular answer.
66% of participants in the survey expect the 10-year Treasury to remain between 3.0% – 4.5% for the next six months.
CFOs predict Kamala will outshine Donald Trump
According to a CNBC survey, more than 50% of chief financial officers believe Donald Trump’s policies will be more effective at combating inflation and stimulating the economy.
More than half of the respondents are still convinced that Kamala will win in the November 2024 US Presidential elections.
A separate survey conducted on Thursday by UBS revealed that well over half of wealthy investors in the US intend to vote for Harris.
More than half of these millionaire investors chose Donald Trump to be “better equipped” to address the economy, just like the CFOs.
Joel Naroff, president of Naroff Economics, has a completely different opinion.
In response to another CNBC survey he wrote:
Assuming Trump will follow through with his proposals, a wide-ranging tariff and mass deportations would increase inflation and slow down the economy to a point where a recession is likely to follow.
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