I believe technology, particularly semiconductors and AI infrastructure, remains one of the strongest long-term growth sectors, although valuations warrant caution.
Easing oil prices and potentially lower interest rates could benefit growth stocks by reducing costs and supporting valuations. However, persistent inflation, geopolitical uncertainty and excessive AI capital expenditure remain significant headwinds.
Semiconductors offer structural growth opportunities, but remain exposed to cyclical demand, inventory fluctuations and potential oversupply.
Rather than relying solely on market sentiment or technical indicators, I prefer combining fundamental valuations, earnings growth, free cash flow and macroeconomic conditions. A favourable macro environment may lift an entire sector, but sustainable returns ultimately depend on whether companies can translate growth into profitability.
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