Edmond de Rothschild stays bullish on equities as tech sell-off underscores diversification need
SPY•Edmond de Rothschild remains positive on equities but favors greater geographic and sector diversification as concerns about AI infrastructure risks weigh on technology stocks. Technology stocks fell 8.1% and the semiconductor index dropped 15.7%, while the firm increased fixed-income exposure.
1. Market outlook
Edmond de Rothschild remains positive on equities but favors greater geographic and sector diversification as AI infrastructure risks drive a technology selloff. The Nasdaq entered correction territory, falling more than 10% from recent highs, while technology stocks fell 8.1% and the SOX semiconductor index plunged 15.7%. The firm increased fixed-income exposure as carry and diversification became more attractive, without assuming bonds would sustainably decouple from equities. Its outlook for the US dollar remains negative, though risk aversion could temporarily support the currency.
