BayernInvest sees AI-led earnings boom supporting equities, flags near-term consolidation risk
SPY•Portfolio positioning
Equity exposure was cut slightly below neutral with options hedges; gold and infrastructure were raised to overweight positions.
Earnings strength spreading across regions
MSCI AC Asia Pacific Q2 earnings rose about 90% year-on-year, driven by AI and semiconductors centered in Taiwan and Korea.
S&P 500 Q2 earnings grew about 40%, with gains spreading beyond mega-cap tech; STOXX 600 growth was seen near 20%.
AI-led capex and earnings seen as equity tailwinds
Bayerninvest flagged AI-led capex and strong earnings as key equity tailwinds, while warning near-term consolidation risk in Q4 2026.
Geopolitical tensions and rising bond yields were cited as main headwinds, with inflation risks and heavy issuance pressuring global rates.
