ACI CEO Todd R. Walsh was recently quoted in Citywire to discuss factors contributing to the favorability of US equities.
Here is an excerpt below from Citywire:
“Alpha Cubed Investments, an independent investment advisory company with its headquarters in Irvine, California, has its foot down on US equities and sees the market traveling at 80mph over the next year.
CEO and chief technical analyst Todd Walsh cites three reasons. Firstly, the market remains in a technical bull market. Secondly, presidential election years – such as the one we are in – have been good for US equities. And thirdly, he points to two major themes.
‘AI is similar to the development of the PC in the 1980s and the emergence of the internet in the 1990s in that it will change how we live and work,’ he says. ‘We think we are still in the early innings in the buildout of the AI ecosystem, but recognize that stocks have gone up a lot already and it’s normal to expect the sector to consolidate gains.’
He recommends using market volatility to dollar cost average into AI names.
‘Many investors don’t realize that it’s essentially kept pace with the white-hot Nasdaq 100 since the Fed shifted gears,’ he says. ‘Now that it has moved to an easing cycle, we think the dividend/value trade has legs for some time to come.’
He favors companies with a dividend payout ratio of 50% or lower and a history of raising dividends for at least 10 years.”
Click Here to Read the Full Article in Citywire
