Wei Li

Upgraded U.S. equities from neutral to overweight due to economic incentives for a cease-fire in Iran and strong earnings upgrades with positive revision momentum, making valuations attractive.

Hyperscaler capex is forecast to grow 60% year-over-year, and monetization of AI is showing positive signs with annual revenue run rate increasing to $30 billion. The U.S. has an edge in AI due to relative insulation from energy disruptions.

Upgraded emerging markets to overweight, driven by countries like South Korea and Taiwan, due to earnings upgrades and AI demand.

Hyperscaler capex is forecast to grow 60% year-over-year, and monetization of AI is showing positive signs with annual revenue run rate increasing to $30 billion. The U.S. has an edge in AI due to relative insulation from energy disruptions.

US equities remain overweight despite oil shock and volatility because risk appetite is holding up well, earnings are strong, and the market is focusing on earnings. We recently upgraded US equities.

Upgraded emerging markets to overweight, driven by countries like South Korea and Taiwan, due to earnings upgrades and AI demand.

Upgraded emerging markets to overweight, driven by countries like South Korea and Taiwan, due to earnings upgrades and AI demand.

While broadly neutral on Chinese equities, they favor specific sectors including AI, tech, automation, green energy, and digital trade due to selective opportunities.

While broadly neutral on Chinese equities, they favor specific sectors including AI, tech, automation, green energy, and digital trade due to selective opportunities.

While broadly neutral on Chinese equities, they favor specific sectors including AI, tech, automation, green energy, and digital trade due to selective opportunities.

Wei Li explicitly names "defense" as a key investment theme being "catapulted" and accelerated by events in the Middle East. Geopolitical conflict increases focus on and spending for national and regional defense, supporting the sector's fundamentals. This is a structural theme with positive demand drivers, making it an attractive area for investment. A sudden and lasting peace that drastically reduces defense spending priorities.

Wei Li explicitly names "infrastructure" as a key investment theme linked to greater focus on "supply chain resilience" and "reshoring," which is being accelerated by current events. Geopolitical and trade disruptions create demand for more resilient infrastructure, both for rebuilding and for securing supply chains. Many infrastructure companies are global, benefiting from the theme regardless of location. This is a structural theme with reinforcing near and medium-term demand drivers. A significant global economic downturn leading to widespread cancellation or deferral of infrastructure projects.

Wei Li states the Middle East conflict is accelerating the theme of "energy security" and "energy independence," which is an "all of the above" approach including traditional and alternative sources. She notes 60% of the global population lives in natural gas-importing countries facing disrupted supply. Geopolitical instability creates a "supercharged environment" for investing in energy security. This theme was already in place due to factors like AI data center power demand and is now being accelerated. The sector should grow in significance within portfolios. This is a structural, long-term investment opportunity catalyzed by current events. A rapid and sustained resolution to Middle East tensions reducing the perceived urgency for energy independence.