We were recently featured in the Australian Financial Review discussing key market themes as investors await potential policy announcements from US President Donald Trump at the World Economic Forum in Davos.
Our co-portfolio manager, Thomas Rice, highlighted the importance of upcoming US tech earnings, particularly Intel's fourth-quarter results on Thursday. Following Taiwan Semiconductor's forecast of close to 30 per cent revenue growth in 2026, which beat analyst estimates, attention now turns to whether this optimism extends to US tech companies.
"Markets are looking for confirmation that AI capex is stronger for longer," Rice said. "And Intel's earnings are the next key checkpoint – it will test whether the optimism signalled by TSMC carries into US tech guidance."
However, Rice also cautioned about the geopolitical unpredictability impacting markets, noting Trump's recent moves on foreign policy, including his pursuit of Greenland.
"Washington's unpredictability on foreign policy means any sharp moves could trigger risk-off flows," he said. "Investors should be prepared for headline-driven swings that can amplify or offset the fundamental signals from earnings and economic data."
To read the article, click the link below.