Latest news with #tailwinds
Mint
26-05-2025
- Business
- Mint
India to benefit from foreign inflows, stock-specific approach better, says Yogesh Patil of LIC AMC
India will be one of the key beneficiaries of foreign investor flows, with an anticipated slowdown in the US amid escalating trade tensions, according to Yogesh Patil, chief investment officer (CIO), equity at LIC Mutual Fund Asset Management Ltd. A sustained low inflation and supply of domestic risk capital are likely to serve as tailwinds for India's equity markets even as earnings growth is expected to get a boost from a favourable base effect in the latter part of the fiscal, said Patil. Investors are better off following a stock-specific approach, he said. Edited excerpts: The abatement of Indo-Pak tensions, trade deals between the US and its trading partners and rate cuts here have led to some recovery from the low of 7 April. Is the worst behind the markets? How are our markets looking from here, and your take on returns compared with the past five years? Most of these known factors are already discounted in the market prices. While investing in equities, investors are always exposed to a few unknown risks. Hence, investors should ideally be focused on the macro fundamentals and expected earnings growth. Also read: Boom in unlisted NSE shares strains grey market trades It is amply clear that the US is open to negotiating the trade deals. At home, we have a growing economy, stable macros, improving terms of trade, improving primary deficit, relatively stable currency and low inflation.. A structural rise in discretionary consumption may further aid economic growth. A sustained low inflation and supply of domestic risk capital are likely to serve as tailwinds for the equity markets. Earnings growth may drive the stock prices. Investors should expect a stock-specific market, going forward. Investments in diversified equity mutual funds with a five-year timeframe may generate healthy risk-adjusted returns. FPIs appear to have returned to the market in the past month and a half. Will their inflows sustain, given the narrowing yield gap–earnings yield on equity narrowing with respect to the US bond yield? Earlier, we have seen money flow from emerging markets to the US, and foreign portfolio investors (FPIs) were underweight on Indian equities. However, as the US is expected to slow down amidst trade wars, the money is expected to move out of the US. As the dollar index trends downwards, investors are moving away from the US dollar and getting into gold and emerging market equities. India can be one of the key beneficiaries of flows. The yield gap has limited relevance. Is SIP the best mode for the small retail investor? As mentioned earlier, Indian equities are expected to do well over the medium term, as both domestic and foreign investors would like to participate in the India growth story. The SIP is a disciplined method of investing in equities. Investors choosing SIPs over trying to time their equity investments is structurally positive for wealth-creation at the investor level. The SIP book has been supportive for our equity markets as well. Also read: Why the bond market is unfazed by a 22-year-low yield gap There is an argument that earnings have been better than estimated in Q4FY25. But if earnings growth is in a single digit, how do you justify Nifty/Nifty 500 valuations? The earnings growth in Q4 FY25 was better than estimates. Analyst estimates were also somewhat muted due to an expectation of a slowdown after Q3 numbers. Stock valuations are also guided by the prevailing interest rates in the economy. Low interest rates encourage investors to ascribe higher multiples to stocks in a growth market such as India. Analyst estimates of earnings will also factor in the lower financing costs. Also, the base effect will play favourably for earnings growth in the later part of FY26. Are you fully invested or keeping some powder dry? Why? We do not hold high cash levels in our equity portfolios. Our investment process expects us to make investment decisions after considering business fundamentals, and not go in cash anticipating market movements. In most cases, it is futile to predict corrections. Also, we presume that our investors have done their asset allocation, and when they invest in equity schemes, they have handed over money to us to buy stocks. Hence, it makes little sense to hold high cash levels in equity schemes. In the current market, which sectors will you buy and which ones will you avoid? At core, we are growth investors. We look for companies in a favourable business cycle, with a promoter track record of efficient capital allocation, strong balance sheet, scalable business, reasonable return on capital and higher growth rates compared to peers. As a fund house, we look at emerging and growth sectors. The capital goods, engineering and discretionary consumption basket seems positive. Also read: FPI assets regain $800 bn level after four months as markets rebound Considering the current scenario, we are avoiding low-growth and high-valuation companies. We tend to avoid new-age, loss-making companies at higher multiples. We are avoiding shipping, hard commodity and commodity chemicals companies. How is the churn at the portfolio level? We invest for the long term. Investing in high-quality companies with a long growth pathway and holding on to the stocks for long helps us benefit from compounding. We avoid excessive churning in our equity portfolios. But we may book out if the underlying investment thesis changes. We tend to act swiftly whenever there is a stock-specific development or an event impacting the broad market. On the regulatory front, Sebi allowed a new asset class, Specialized Investment Fund (SIF), with a minimum ticket size of ₹10 lakh. How is it shaping up? Our financial markets are evolving, and growing investor interest is evident in portfolio management services and alternate investment funds. The SIF, at the ticket size of ₹10 lakh, can be the perfect product with the right positioning. Investors in SIFs are expected to benefit from evolved investment strategies and transparent working of mutual funds.
Yahoo
29-04-2025
- Business
- Yahoo
Mexican tequila maker Cuervo pockets more profit on weaker peso, despite volume dip
MEXICO CITY (Reuters) - Becle, the world's largest tequila producer, on Tuesday reported a first-quarter profit up 15% from a year earlier, pulling in more pesos due to the currency's weakening despite moving less product in the period. Becle's net profit hit 1.16 billion pesos ($56.69 million), in line with estimates from analysts polled by LSEG. The firm, which makes the bulk of its income from tequilas but also produces a range of spirits such as Creyente mezcal, Stranahan's whiskey, Kraken rum and Boodles gin, attributed the boost to lower input costs and exchange-rate tailwinds given the Mexican peso's depreciation. The currency weakened close to 24% against the U.S. dollar from the end of March last year to the end of March this year. The U.S. and Canada remained Becle's largest market, though volumes slipped 3.6% year-on-year to just over 3 million crates. In Mexico, volumes dropped 13% and in the rest of the world they dropped 14%. Still, revenues ticked up 7% to 9.63 billion pesos, slightly above the LSEG-compiled estimate. "Going into 2025, we are encouraged by our ability to manage the business effectively despite ongoing industry pressures and consumer caution," management said in a statement.
Yahoo
15-04-2025
- Business
- Yahoo
Sunrise Realty Trust Schedules Earnings Release and Conference Call for the First Quarter Ending March 31, 2025
WEST PALM BEACH, Fla., April 15, 2025 (GLOBE NEWSWIRE) -- Sunrise Realty Trust, Inc. ('SUNS' or 'the Company') (NASDAQ: SUNS), a lender on the Tannenbaum Capital Group ('TCG') Real Estate platform, today announced that it will release its financial results for the first quarter ended March 31, 2025 on Wednesday, May 7th, 2025 before market open. Management will review SUNS' financial results at 10:00 am ET via webcast available on the Investor Relations website at or by registering in advance at this link. To participate in the live conference call, dial 888-672-2415 (or 646-307-1952 for international callers) and provide Conference ID 6235201. A replay will be available one hour after the event. SUNS distributes its earnings releases via its website and email lists. Those interested in receiving firm updates by email can sign up for them here. About Sunrise Realty Trust, Realty Trust, Inc. (NASDAQ: SUNS) is an institutional commercial real estate ('CRE') lender providing flexible financing solutions to sponsors of CRE projects in the Southern United States. It focuses on transitional CRE business plans with the potential for near-term value creation, collateralized by top-tier assets in established and rapidly expanding Southern markets. For additional information regarding the Company, please visit About TCG Real EstateTCG Real Estate refers to a group of affiliated CRE-focused debt funds, including a Nasdaq-listed mortgage REIT, Sunrise Realty Trust, Inc. (NASDAQ: SUNS), and a private mortgage REIT, Southern Realty Trust, Inc. The funds provide flexible financing on transitional CRE properties that present opportunities for near-term value creation, with a focus on top-tier CRE assets located primarily within markets in the Southern U.S. benefitting from economic tailwinds with growth potential. Investor Relations Contact Robyn Tannenbaum561-510-2293 ir@ Media Contact Profile AdvisorsRich Myers & Rachel Goun347-774-1125srt@
Forbes
13-04-2025
- Business
- Forbes
Trump's Trade War Bravado: A Capital Flow Risk Investors Can't Ignore
Aerial front view Container cargo ship full carrier container with terminal commercial port ... More background for business logistics, import export, shipping or freight transportation. Speaking at a National Republican Congressional Committee (NRCC) dinner on April 8, President Donald Trump didn't hold back in defending his aggressive tariff policy. Trump proudly mocked foreign leaders by saying, 'These countries are calling us up, kissing my a**. They are dying to make a deal.' Classic Trump bravado. Even if you're a MAGA die-hard, it's important to recognize that many living overseas aren't happy with President Trump. Global sentiment toward America appears to be shifting. Read a few opinion columns in international publications and you'll see what I mean. In January net purchases of US equities by foreign central banks plummeted $28 billion. This was a rather dramatic change in trend, as shown below. Source: Reuters It's interesting and at least slightly disturbing to see that foreign capital was aggressively fleeing the US in January. Keep in mind, that was before President Trump humiliated President Zelensky in front of the world, and before Trump unveiled his thorny tariff numbers in the Rose Garden. President Trump is following through on his campaign promises to create a more isolationist America. An unintended consequence could be a broad repatriation of capital from the US to the rest of the world, and that's an investment risk most investors aren't adequately positioned for. No single country outperforms forever. The US has beat the rest of the world's stock markets for a very long time, and this year is likely to be a turning point. Source: Bloomberg The magnitude of US equity outperformance has been staggering since 2010. Whenever mean reversion occurs, it could be a long way down. Valuations are an expression of investor sentiment. It would be easy for foreign investors to justify selling US assets on a valuation basis, because US assets trade at a hefty premium. For example, the S&P 500 trades at a forward P/E ratio of 20, which dwarfs Europe's STOXX 600 at 13, and Brazil's Bovespa at 7. Source: Bank of America Global Investment Strategy Comparing individual stocks sometimes helps clarify a fundamental disparity. Siemens (SIEGY), a German industrial giant, is one company that stands to benefit from the shifting tides. Siemens competes in growing markets driven by digitalization and the energy transition, while its industrial equipment generates steady aftermarket revenue. Siemens offers investors better value and growth prospects than many S&P 500 firms. For example, why buy Honeywell at 19 times earnings when you can buy Siemens at 15? Siemens is expected to grow earnings 18% this year compared to only 7% EPS growth for Honeywell. Other investors may want to rotate money from the US to a country like Brazil. Brazil is rich in natural resources and has positive demographic tailwinds. Itau Unibanco (ITUB), a high-quality Brazilian bank, is expected to grow earnings 11% this year. Why not sell a US bank like JPMorgan, which is expected to see its net earnings fall 9% this year, and buy a stock like Itau that has superior growth potential? Itau trades at 1.6 times book value compared to 2 times book for JPMorgan. The spark for a durable leadership rotation at the macro level is usually a mix of attractive valuations and a fundamental catalyst that reverses sentiment. Flows follow. Interestingly, global leadership inflections tend to occur during bear markets. The MSCI World Index, which includes both the US and foreign developed markets, experienced declines exceeding 20% in key years when global leadership cycles reversed, i.e. 1990, 2002 and 2008. The MSCI World fell almost 17% between February 19 and April 8. It could easily exceed the 20% drawdown threshold to qualify as a bear market later this year. Earnings expectations are still too high and that may be the next shoe to drop. Is 2025 going to be the next big shift in global capital flows? Passive investing works fine when the world isn't changing much. The problem for passive investors is this is one of those rare times when the world is dramatically changing. If international equities continue outperforming like they have been year-to-date, passive investors will be caught dramatically offsides. For instance, consider a typical 55-year-old Vanguard client's target date fund, like the Vanguard Target Retirement 2035 Fund. Per Vanguard's allocation models, it might hold: Point is: passive portfolios are heavily weighted to the US. The passive investing style is a mind numbingly simple. It's a strategy that systematically invests in the biggest winners from the past (i.e. the biggest market cap stocks). Some of the largest US companies have bigger market caps than entire European countries. The gap has grown so wide between the US and international markets, it will take a very long time for passive index funds to catch up to the trade if international stocks take over the leadership baton. Bottom-line: President Trump's tariff-driven bravado, while rallying his base, risks igniting a seismic shift in global capital flows that investors cannot afford to ignore. Make sure you don't get caught flat footed. Disclosure: I own shares of Siemens and Itau Unibanco in client accounts I professionally manage. This material in this article is not intended to be relied upon as a forecast, research or investment advice.
Yahoo
22-02-2025
- Business
- Yahoo
Alphabet Inc. (GOOGL) Boosts AI Investment to $75B, Expands Gemini AI Leadership
We recently compiled a list of the . In this article, we are going to take a look at where Alphabet Inc. (NASDAQ:GOOGL) stands against the other hot AI stocks. A disruptive breakthrough by a Chinese tech startup in January 2025 has shaken the artificial intelligence (AI) market to its core, triggering a sharp sell-off among tech stocks and compelling investors to rethink their exposure to expensive semiconductors and large hardware providers. In just a few days, this innovative AI model demonstrated performance on par with established Western systems while operating at a fraction of the cost, upending the long-held belief that cutting-edge artificial intelligence must be built on enormous capital outlays and massive computing infrastructures. This unexpected development has exposed vulnerabilities in sectors that have relied heavily on high-cost hardware, sending ripples through investment strategies and forcing market participants to rapidly reexamine the economics of AI. With the rapid emergence of more cost-efficient, scalable models, investors are now witnessing a fundamental shift where technological efficiency and operational agility are beginning to outweigh the premium previously demanded for state-of-the-art AI performance. This shift is compelling companies across the AI landscape to accelerate innovation and streamline operations as they adapt to a new era defined by lower training costs and more efficient architectures. Although regulatory and national security concerns continue to loom large – particularly regarding data privacy and the geopolitical implications of relying on foreign-developed technologies – the promise of significantly reduced capital expenditures is reshaping the competitive dynamics of the sector. The advent of these efficient, cost-effective models forces large hardware providers and entrenched tech giants to reevaluate their strategies, while simultaneously opening the door to a broader array of investment opportunities that are less dependent on massive budgets and intensive computing resources. For investors, the rapid evolution toward these scalable solutions presents an opportunity to capture long-term value in a market that is becoming increasingly competitive and diversified, as the traditional paradigms of AI development give way to more sustainable and innovative approaches. With this, we will take a look at some hot stocks to buy in the AI sector. We shortlisted 10 names with large exposure to the AI megatrend according to ETF databases. We ranked the names by the magnitude of positive revision in 2026 EPS estimates in the last twelve months from Wall Street analyst consensus (street). Our belief is that significant upward revision in EPS estimates from leading analysts serves as confirmation that companies are genuinely benefiting from the AI-related tailwinds and are well-positioned to capitalize on future growth opportunities driven by these advancements. For all the companies mentioned we also include the number of hedge funds that own it. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (). A user's hands typing a search query into a Google Search box, emphasizing the company's search capabilities. Alphabet Inc. (NASDAQ:GOOGL), the parent company of Google, is a global technology leader offering a wide range of products and services, which include its search engine, online advertising, cloud computing, and platforms like YouTube and Android. The company also invests heavily in AI and other emerging technologies. Despite the recent accelerating fears in the AI space, Alphabet Inc. (NASDAQ:GOOGL) announced plans to invest $75 billion in AI infrastructure in 2025, a significant increase from the previous year's $52.5 billion. Also, the company closed its financial year with solid +12% YoY revenue growth driven by robust momentum across Google Services, Cloud, and Search, which remains the largest contributor to growth. On the AI front, the company launched Gemini 2.0, its most capable AI model yet, with the developer base doubling to 4.4 million in just 6 months – this represents a firm step towards becoming one of the largest monetizers of AI products, something at which Chinese competitors still lag behind their US counterparts. During the recent 4Q 2024 earnings call, CEO Sundar Pichai further emphasized the importance of AI as a transformative technology and defended the substantial investments, aiming to maintain the leadership of Alphabet Inc. (NASDAQ:GOOGL) in the evolving AI landscape. Here's what he said: 'Late last year, we also debuted our experimental Gemini 2.0 Flash thinking model. The progress to scale thinking has been super fast and the review so far have been extremely positive. We are working on even better thinking models and look forward to sharing those with the developer community soon. Gemini 2.0's advances in multimodality and native tool use enable us to build new agents that bring us closer to our vision of a universal assistant.' Overall GOOGL ranks 9th on our list of the hot AI stocks to buy now. While we acknowledge the potential of GOOGL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GOOGL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
