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Market Outlook and Top Picks from Stan Wong (Alibaba, Citigroup & Norwegian Cruise Line)

October 12, 2017

As we make our way into the final months of the year, global equity markets continue to grind higher with U.S. equities in particular reaching new heights. Investor sentiment has clearly turned more positive driven by the increasing breadth of the global economic expansion and expectations of sustained corporate earnings growth. Indeed, the head of the International Monetary Fund (IMF) said last week that “the long-awaited global recovery is taking root” and that three-quarters of the globe is enjoying an economic upswing in “the broadest-based acceleration since the start of the decade”. A ‘Goldilocks’ backdrop of improving global economic growth and modest inflation should allow central banks to raise interest rates gradually, allowing for an extended period of economic growth and stronger corporate earnings. From a technical perspective, equity markets do appear…

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Stan in the Globe & Mail

Investment opportunities in artificial intelligence (AI) & robotics

October 4, 2017

…Mr. Wong says that outside his core positions, he often looks to add “satellite” investments that have the potential to provide superior returns in client portfolios. This allows him to consider fascinating investment trends and themes that have the potential to be the next Amazon, Facebook or Visa.

Mr. Wong says investing in disruptive and nascent industries such as robotics and artificial intelligence fits that strategy. He believes factors such as aging populations and increasing labour costs will lead to a “rise of the machines” over the next decade. Some of the industries that are expected to be most impacted by AI include manufacturing, military and defence, health care, transportation and agriculture.

The Global X Robotics & Artificial Intelligence ETF is Mr. Wong’s preferred way to play this trend. Nearly 75 per cent of the portfolio is allocated to companies in Japan and the United States that are considered to be leaders in the robotics and AI theme. Top company holdings include Nvidia Corp., Mitsubishi Electric Corp., Intuitive Surgical Inc. and iRobot Corp. Over the past 12 months, the fund has provided a 40-per-cent return…

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