Invest: Deutsche Bank expert Ulrich Stephan: "AI is a boom and not a bubble"
The chief investment strategist at Deutsche Bank talks about this in a podcast, how dangerous the rising bond yields in France and the USA are and where he sees opportunities in the Dax.
Deutsche Bank expert Ulrich Stephan predicts a new phase of stock market gains in the current quarter. The key drivers, according to Stephan, are consistently strong corporate profits, both in the US and Europe. Analysts estimate that S&P 500 company profits will rise more than 30 percent year-over-year, while European companies in the Stoxx Europe 600 could see profits increase by over 20 percent.
Even in recent quarters, earnings have been astonishingly strong, Stephan notes. The Deutsche Bank expert emphasizes that this type of performance is typically seen only after crises. Central to the discussion is the ongoing boom in artificial intelligence (AI). Despite growing concerns about overestimations, Stephan maintains that the current rally is a genuine boom, not a bubble.
He believes that companies will continue to heavily invest in AI throughout the next year, driving profits further and, consequently, stock prices. Stephan also shares his views on which sectors in the DAX are attractive and expresses concern about the significantly increased bond yields in France and the US. Listen to the full episode with a Handelsblatt subscription.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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