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LivestreamMenuInvestors can profit from identifying the next market fixation in a series of rolling bubbles, according to Macquarie’s head of global desk strategy Viktor Shvets. Speaking to CNBC’s Squawk Box Europe on Wednesday, Shvets said markets are experiencing a series of “rolling bubbles” linked to the artificial intelligence theme and investors should look out for potential winners. “We had a software bubble, which has rolled back,” he said. “We have a chips bubble, which will be rolling back, and then we’ll have AI applications, anything from robotics to biotech.” Macquarie’s research note, published June 1, outlined the potential beneficiaries in more detail. “Today’s bubble is mostly focused on infrastructure that drives Korea and Taiwan but applications and products (robotics and automation to 3D printing, metaverse to biotech and quantum computing) are yet to see their own bubbles,” Shvets wrote. “Today, we are still happy to be overweight Korea and Taiwan, but investors should watch for changes in winners of AI bubbles.” The eyewatering 80% rally in semiconductor stocks that added roughly half a trillion dollars in market cap to the Nasdaq 100 hit a wall last week as the VanEck Semiconductor ETF dropped almost 10% at its session low on Friday. Stocks have recovered gradually since. As such, thematic investment offers a way to navigate the current market environment, Shvets added. “In other words, identify the themes that you believe are going to perform over the next two or three or four years, knowing that one theme could sunset very quickly, but another theme is going to take over,” he told CNBC.Read More
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