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Investors should pay attention to artificial intelligence (AI), software, health care and biotechnology in 2024 as these fields promise “more return dispersion across asset classes, sectors and regions, with complex choices and tradeoffs,” a Goldman Sachs Asset Management said, Monday.
“Long-term disruptive trends in sustainability and technological innovation, including AI, should lead to exciting new realities,” said Stuart Wrigley, the head of Alternatives Capital Markets & Strategy in Asia Pacific at Goldman Sachs Management in the firm’s 2024 investment outlook report.
Stephanie Hui, head of the firm’s Private and Growth Equity in Asia Pacific and also co-head of Asia Pacific Private Investing, assessed that AI workloads will ramp up and that “needs for more observation, monitoring and data management should drive further software and cloud strength” in the 2024-25 period.
Concerning health care and biotechnology, Hui said “structural growth in the pharma outsourcing sector will continue as the biopharma industry continues its transition from a primarily fixed to a primarily variable cost structure.”
“This presents attractive opportunities in outsourced service providers,” Hui added.
The report went on to say that growing private markets offer inflation hedges, enhanced returns and diversification.
The report made it clear that the proliferation of private investments does not mean public markets will diminish.
It said that public markets will provide different opportunities, such as facilitating the quick deployment of capital, and offering investors liquidity to shift rapidly when market conditions change.
Source: m.koreatimes.co.kr
