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  • 'Some Adjustment to Come' for Tech Stocks, JPMorgan's Ogoshi Says

'Some Adjustment to Come' for Tech Stocks, JPMorgan's Ogoshi Says

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Bloomberg Aug 9 03:59 · 22.7k Views

JPMorgan Asset Management's Aisa Ogoshi says the firm is "becoming more selective" and "improving our quality exposure" within the tech and artificial intelligence sectors. Ogoshi also discusses the Bank of Japan's policy decisions and whether the yen will strengthen further.

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Transcript

  • 00:00 Given this whip saw, I'm just wondering does it change a psyche at all
  • 00:03 in any way?
  • 00:04 What does it mean for stock selection?
  • 00:06 Do you think trends have actually changed or as you mentioned, tech is still doing OK?
  • 00:09 Can you still stick to those winners?
  • 00:14 Yes, obviously
  • 00:15 positioning had been extreme,
  • 00:17 especially in the tech sector globally
  • 00:20 and I think that has some adjustment to come.
  • 00:24 I think another point is that, you know, it has
  • 00:27 been an AI NVIDIA centric tech rally.
  • 00:31 I think that may
  • 00:33 diversify into other sub sectors going forward.
  • 00:36 And again, you know, the key is to to keep an eye on the earnings trends,
  • 00:42 Yes.
  • 00:42 And then
  • 00:43 you know, for
  • 00:44 it's, it's easy to panic in these times, but really just
  • 00:48 sit down and look at the numbers and then
  • 00:50 reassess our positioning.
  • 00:52 This is what we tend to do.
  • 00:55 Yeah.
  • 00:55 Well, I saw that I said that the calm in your voice is certainly, you know, the the anchor we need in the storm.
  • 01:00 Like, yeah, let me let me let me say that first.
  • 01:03 So I'm looking at your top holdings and
  • 01:06 you know, not to get into specific names, but certainly you look at the names you have you know, the the TSM CS, you have
  • 01:12 SK Heinigs.
  • 01:14 A lot of it is still leaning towards AI.
  • 01:15 And you mentioned
  • 01:17 we might see a rotation out of that
  • 01:19 that theme.
  • 01:20 Are you, do you guys anticipate
  • 01:22 reducing your exposure to the AI theme?
  • 01:28 I would say
  • 01:30 not reducing overall, but just becoming more selective,
  • 01:34 maybe just,
  • 01:36 you know, improving our quality exposure within those sectors
  • 01:40 is one.
  • 01:42 And I think outside of tech, there are many areas that are still doing very well.
  • 01:48 So you know, the Japan corporate governance and shareholder return
  • 01:52 theme is still ongoing very strongly.
  • 01:55 In Korea, we have a similar theme as well.
  • 01:58 So it's not just about tech.
  • 02:00 And I think, again, it's really important to to,
  • 02:05 you know,
  • 02:05 observe the actual trends and observe the actual earnings and then decide upon that.
  • 02:10 It
  • 02:12 seems like
  • 02:13 it what's really dominate the narrative of late is,
  • 02:15 you know, what central banks have been doing, especially when it comes to the BOJ.
  • 02:19 Do you think that the BOJ can still hike rates this year or do you think they're a big gunshot?
  • 02:24 Just given some of the comments that we heard
  • 02:26 from you Cheetah this week as well.
  • 02:28 And do you expect the yen to strengthen from here?
  • 02:32 Yes, it's
  • 02:33 well central bank
  • 02:35 policies is very difficult to predict.
  • 02:37 What I can say or what we would like to remind ourselves is that the monetary policy normalization is positive
  • 02:45 for Japan overall
  • 02:47 and we are
  • 02:48 we, we did want to see the yen stop weakening and that's a very big positive again for the domestic Japan
  • 02:56 economy.
  • 02:56 So
  • 02:57 very difficult to call the timing of the, you know,
  • 03:01 next rate rise,
  • 03:03 but I would emphasise that it is not a negative
  • 03:06 unlike in the
  • 03:07 other
  • 03:08 developed economies,
  • 03:10 raising rates for Japan is a positive
  • 03:13 and this is an ongoing normalization process.