AI Stocks Poised for Growth, Experts Debate Market Sentiment and Global Economic Models
Economy
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31st October 2025, 2:34 PM
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Detailed Coverage :
Mark Matthews of Julius Baer believes AI stocks have substantial growth potential, despite 'frothy' sentiment. He anticipates S&P 500 and Nasdaq rising 15-20% in 12 months, while Shankar Sharma notes US market strength is mainly in dollar terms.
The experts debated China's economic model. Matthews highlighted muted stock returns due to state control and warned India against copying state-heavy approaches, citing inequality risks if youth jobs are scarce. Sharma argued China strategically suppressed its market for R&D focus and views India as 'too financialised,' with engineers favoring apps over tech, an irreversible trend. Matthews also commented that nationalism's impact on deglobalisation has been less severe than anticipated.
Impact: This news offers insights into AI stock potential, global market sentiment, and specific economic risks for India and China. It helps investors gauge market trends and policy impacts, influencing investment decisions in technology and equity markets, and provides strategic context for emerging markets. Impact rating: 7/10
Definitions: * Frothy: Market sentiment overly enthusiastic, potentially inflating asset prices unsustainably. * Financialised: Economy dominated by financial markets and institutions, often overshadowing real production. * Deglobalisation: Reduced international economic and political integration, less trade and investment.