CIO Letter: Market Rotation Offers Attractive Opportunities

EdRAM highlights a rotation in US markets where small-caps are outperforming large-cap tech as the AI cycle matures. The firm is increasing exposure to Japanese and emerging equities while favoring short-to-intermediate corporate bonds.

Key Takeaways

• 1.The US market is experiencing a significant broadening and rebalancing toward small-cap stocks as the AI cycle matures.
• 2.Recent corrections in the software sector are viewed as excessive; the firm expects AI to stimulate rather than shrink software demand via the Jevons paradox.
• 3.EdRAM is increasing exposure to Emerging Markets and Japanese equities, citing Japan's reflationary agenda and EM's potential to benefit from US rate cuts.

Table of Contents

• Market rotation offers attractive opportunities
• KEY POINTS
• LEGAL DISCLAIMER

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