Bank Julius Baer's CIO Sees AI as a Long-Term Investment Opportunity, Prefers Large-Cap Stocks in India
Bhaskar Laxminarayan, Chief Investment Officer at Bank Julius Baer, discusses AI, India's growth story, and investment opportunities in large-cap stocks, consumer discretionary, and REITs.
Bank Julius BaerAiInvestment OpportunityLargecap StocksIndiaConsumer DiscretionaryReitsBfsiNbfcsTaiwanAsiapacificUsFedInterest RatesBond RallyEquitiesReal EstateSep 07, 2024
Laxminarayan stated that the banking, financial services, and insurance (BFSI) sector in India appears promising, but some non-banking financial companies (NBFCs) are expensive. He prefers investing in large-cap stocks in India, finding traditional banks more attractive as they are better valued and likely to benefit from India's growth.
Despite high costs, he would also consider investing in consumer discretionary stocks. Laxminarayan discussed AI, stating that many investors have shifted their focus to the broader Asia-Pacific (APAC) region, rather than just targeting the MSCI Asia ex-Japan index. Taiwan has become an attractive market due to its strong position in the AI industry, leading to a substantial inflow of investment into the country.
When asked about his top three investment destinations today, outside India and in India, Laxminarayan said he would stick to large-caps in India. He thinks they are not done as well and have been tried and tested through every cycle possible. The BFSI segment is actually looking very, very nice, with traditional banks looking a lot nicer and cheaper and more properly valued.
Laxminarayan also discussed REITs, stating that he has dealt with them globally for a very long time and is supportive of REITs in India. However, he believes that the REIT structure can be simplified and tax structure improved to make significant inroads into infrastructure investment.
On the data from the United States, Laxminarayan believes that even if the non-farm payroll is soft, it will lead to a question of whether the Fed will cut 50 basis points or 25 as the base case. He thinks that the bull run in the US, which is a global bull run, started in October 22, and this is not stopping.
Regarding India debt, Laxminarayan believes that the bond rally is secure, but it is getting fairly expensive very quickly. He would pick equities over bonds in India.
Bank Julius Baer is a Swiss private banking group with a long history of providing investment management and wealth management services to private clients, family offices, and institutional investors.
Information
Bank Julius Baer was founded in 1890 and is headquartered in Zurich, Switzerland. The bank has a strong presence in Asia, Europe, and Latin America, with a global network of offices and subsidiaries. Bank Julius Baer is known for its expertise in investment management, wealth management, and private banking.
Bank Julius Baer is a leading Swiss private banking group with a long history of providing investment management and wealth management services to private clients, family offices, and institutional investors. With a strong presence in Asia, Europe, and Latin America, Bank Julius Baer is committed to delivering exceptional service and expertise to its clients.
Frequently Asked Questions
What is Bank Julius Baer's view on AI as an investment opportunity?
Bank Julius Baer's CIO, Bhaskar Laxminarayan, believes that AI is a long-term investment opportunity.
What is Laxminarayan's investment strategy in India?
Laxminarayan prefers investing in large-cap stocks in India, finding traditional banks more attractive as they are better valued and likely to benefit from India's growth.
What is the impact of AI on the market, according to Laxminarayan?
Laxminarayan believes that AI has led to a substantial inflow of investment into Taiwan, making it an attractive market.
What is Laxminarayan's view on REITs in India?
Laxminarayan is supportive of REITs in India, but believes that the REIT structure can be simplified and tax structure improved to make significant inroads into infrastructure investment.
What is Laxminarayan's prediction for the US interest rates?
Laxminarayan believes that even if the non-farm payroll is soft, it will lead to a question of whether the Fed will cut 50 basis points or 25 as the base case.
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