Julius Baer holds back on India citing 'anti-AI trade'
Swiss private bank Julius Baer is holding back on investing in Indian stocks, mainly because India isn't riding the AI wave like the US and North Asian semiconductor giants.
Their Global CIO Yves Bonzon calls this an "anti-artificial intelligence (AI) trade," pointing out that economic challenges and rising oil prices are making things tougher for India right now.
Yves Bonzon urges investor diversification
Bonzon says higher oil prices are pushing up inflation and hurting India's trade balance, so he recommends investors stay diversified instead of putting more money into India.
Right now, Julius Baer is focusing on US companies building AI infrastructure, and keeping an eye on big IPOs in the US to see how markets hold up.
Despite global tensions, Bonzon notes that private sector balance sheets in the US and Europe remain strong.