• July 31, 2024

The real 'winners' of AI trade are energy companies

The semiconductor sector is rallying Wednesday, following Advanced Micro Devices' (AMD) second quarter earnings beat driven by the success of its AI-related sales. TCW senior portfolio manager Eli Horton joins Wealth! to discuss where he believes investors should look to capitalize on the AI trend. Horton emphasizes that "the literal foundation" of AI is the power and electric grid. He notes that companies are investing billions in their AI initiatives because "this is mission-critical to their businesses." This investment, he explains, flows into chips, servers and networking, and data centers — all of which require substantial power consumption. Horton describes this as "an indirect way to invest in this theme." However, he cautions that many investors may not be exposed to the true "winners" of the AI trade. "The winners of these themes are old economy industrial-type businesses," Horton tells Yahoo Finance, highlighting companies within electrical equipment and power generation sectors. For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Angel Smith

  • July 31, 2024

As CRE cash flows rise, expect 'few years of tough headlines'

The commercial real estate (CRE) space has taken a hit after the COVID-19 pandemic, stemming from the advent of remote and hybrid work setups. Data from MSCI shows that there is $20.5 billion worth of portfolios of foreclosed and seized properties in the second quarter, a 13% increase since the previous quarter. JPMorgan Co-Head of US real estate stock research Anthony Paolone joins Catalysts to give insight into the current landscape for commercial real estate and what it means for the broader market moving forward. "Interest rates certainly play a big role in commercial real estate and certainly how the properties are valued. But what we think is pretty interesting is that this move up in rates over the last couple of years, we've seen the publicly traded real estate stocks, the REITs [real estate investment trusts] mainly already adjust to that rate environment," Paolone tells Yahoo Finance. "And so to the extent we get any movement down in rates, we think it's actually pretty positive for these companies. We think the private market is still going to take some time to fully adjust."  For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Nicholas Jacobino

  • July 31, 2024

Yen Jumps After Bank of Japan Lifts Rates

The yen surged, after the Bank of Japan raised interest rates, signaled further policy tightening is likely, and and cited concerns about the historically weak currency. + Japanese bonds sold off, lifting yields, after the BOJ said it would also pare back bond purchases. The BOJ said it would keep raising rates if growth and inflation projections were met.

  • July 31, 2024

Bank of Japan Raises Interest Rates. What It Means for the Dollar.

The Bank of Japan raised its key interest rate to 0.25% on Wednesday. With the Federal Reserve poised to start lowering rates soon, that could help weaken the dollar and help the yen. While the BOJ move was widely expected, it’s significant because it ends decades of Japan keeping short-term interest rates near or below zero.