Robeco Asset Management: "AI Has Not Peaked, but Undervalued Financials and Healthcare Are Attractive"

Robeco Announces 2024 Outlook for Equities
“AI and Semiconductors Will Remain on Growth Trajectory
Diversification into Sectors Like Financials and Healthcare Is Like Keeping Near the ‘Emergency Exit’”

Global asset management firm Robeco Asset Management has projected that the growth of global stock markets will continue in the second half of this year. While dismissing recent claims that the semiconductor and artificial intelligence (AI) sectors have peaked, the firm suggested that investors strike a better balance by shifting toward undervalued, high-growth sectors such as financials, consumer goods, and healthcare.

Chris Berkouwer, Deputy Head of Global Stars Equity Strategy at Robeco Asset Management, said at a press conference held on July 14 in Yeouido, Seoul, “We do not believe AI and semiconductors have peaked. We expect their growth momentum to be maintained.”

Chris Berkouwer, Deputy Head of Global Stars Equity Strategy at Robeco Asset Management, is presenting the stock market outlook for the second half of the year at a press conference held in Yeouido, Seoul on the 14th. Robeco Asset Management

Berkouwer explained, “However, the valuation gap between AI and other sectors has become too wide. While the market anticipates continued growth for AI, from our perspective, there are sectors with solid fundamentals and healthy profit growth, yet their valuations are currently not reflecting their underlying strength, creating a mismatch.”

He added, “We also maintain an ‘overweight’ position in technology stocks, but from a risk-reward perspective, we have increased our positions in financials and healthcare, which we find more attractive at this stage.”

Joshua Crabb, Head of Asia-Pacific Equities at Robeco Asset Management, commented, “You shouldn’t view it as having to choose between AI and non-AI sectors. If profits can be realized from AI, do so, but when pressures mount as they are now, it is wiser to seek opportunities in areas outside of AI.”

Despite the ongoing semiconductor-driven correction, the firm remains optimistic about the growth trajectory of global equities in the second half of the year. Berkouwer stated, “Overall, global stocks will continue to trend upward, though there may be some volatility along the way. Interest rates, geopolitical risks, and AI will continuously play important roles within a triangular dynamic.”

Joshua Crabb, Head of Asia Pacific Equity at Robeco Asset Management, is presenting the outlook for the stock market in the second half of the year at a press conference held on the 14th in Yeouido, Seoul. Robeco Asset Management

He emphasized, “This party will continue, but it is time we keep ourselves closer to the exits and emergency doors in case of a downturn. There are still countries, regions, and sectors that are viable alternatives to AI investments. We need to navigate the market with an awareness of unwanted guests like inflation that tend to accompany accelerated growth.”

Regarding Korea’s stock market—which is marked by high volatility centered on semiconductors—he noted that diversifying into high-dividend and share buyback companies remains a valid strategy. Crabb stated, “Value improvement initiatives are still ongoing in Korea at this point. If the stock market stops rising as rapidly as before and interest in AI cools, attention will return to dividend stocks and companies conducting share buybacks.”

This content was produced with the assistance of AI translation services.