Global investors are increasingly looking beyond geopolitical tensions and focusing on the powerful earnings momentum being driven by artificial intelligence investments, according to Candace Browning, Head, BofA Global Research. Despite ongoing conflict-related concerns, markets continue to find support from robust corporate profits, resilient economic growth, and expectations of relatively accommodative monetary policy in the United States.
“What we are seeing really is basically that there is a trade-off between the war and then the AI capex boom on the other side, robust US earnings growth and then there is also a perception that US policymakers are going to keep monetary policy relatively easy. So, all three of those factors are sort of winning out against the war,” Browning said.
