Morgan Stanley strategist Edward Stanley identified what he believes are the 10 biggest themes in global markets for 2023. I’ll list all of the themes first before getting to those I find most relevant: ‘Earthshots’, the rise of India as a lucrative investing destination and upcoming obesity drugs.
The 10 themes outside of those three involve downward profit margin pressure, bloated developed world inventory levels creating deflationary pressure, accelerated profit growth for ESG companies, venture capital investment, China re-opening, Saudi Arabian socioeconomic restructuring, and artificial intelligence.
Earthshots is a term Morgan Stanley uses for the more than 50 public companies the firm has identified that have “game-changing sustainability technology.” Mr. Stanley describes the decarbonization process as of right now as lethargic, but he expects the pace to ramp higher.
The report lists cutting edge sustainability companies like Boston-based Ginkgo Bioworks, Codexis Inc., and Oxford Nanopore Technologies PLC from the U.K., along with existing companies he calls ‘enablers’ like Siemens AG, Sunrun Inc., and Occidental Petroleum Corp.
Where India is concerned, the strategist believes that a combination of services offshoring by the developed world, manufacturing investment, the energy transition and the country’s existing advanced digital infrastructure will make India the world’s third largest economy (currently fifth) and stock market (currently eighth) by the end of this decade.
Morgan Stanley expects that India will be responsible for 20 per cent of global GDP growth in the 2020s.
Mr. Stanley sees new obesity drugs from Novo Nortdisk and Eli Lilly with exponential sales growth thanks to social media. He notes that obesity drug Wegovy and diabetes treatment Ozempic are mentioned frequently on social media – particularly TikTok – and the medium’s fixation on fitness and health will help drive sales.
— Scott Barlow, Globe and Mail market strategist
CPP Investments Anchors New IndoSpace Fund with US$205 Million Investment – Yahoo Canada Finance
MUMBAI, India, Jan. 30, 2023 /CNW/ – Canada Pension Plan Investment Board (CPP Investments) today announced an investment of US$205 million as an anchor investor in IndoSpace‘s new real estate fund. IndoSpace is a leading real estate company in India. The investment marks the first close for IndoSpace Logistics Parks IV (ILP IV), the company’s fourth development vehicle, targeting US$600 million of total equity commitments.
This is the latest venture between CPP Investments and IndoSpace. The first joint venture, IndoSpace Core, was established in 2017 and now owns the largest portfolio of stabilized modern logistics assets in India. CPP Investments has also invested in ILP III. Following the investment in ILP IV, the partnership will exceed US$1 billion in assets.
ILP IV will add an additional 25-30 million square feet to the IndoSpace portfolio, furthering IndoSpace’s leading position in the Indian market. ILP IV will focus on India’s largest logistics real estate markets: Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, and Pune. The establishment of ILP IV follows on from the first three development funds, which have a combined total of 56 million square feet of modern logistics real estate in India.
Hari Krishna V, Managing Director, Head of Real Estate India, CPP Investments, said, “Over the past few years, we have made numerous investments in India’s industrial space, where we see strong demand as the manufacturing sector continues to grow and the e-commerce sector matures. We are pleased to be working with our longstanding partner IndoSpace to further capitalize on opportunities in this space and believe this investment will deliver strong risk adjusted returns for CPP contributors and beneficiaries.”
Brian Oravec, Managing Partner and CEO, IndoSpace Capital Asia, said, “We are excited to extend our successful partnership with CPP Investments. CPP Investments’ commitment to ILP IV is a testament to IndoSpace’s leadership in the industrial and logistics real estate space in India. ILP IV will allow us to continue to expand our unique national network to better serve our customers. Industrial and logistics infrastructure is a key enabler of economic growth. To meet India’s aim of becoming a US$5 trillion economy by 2025, IndoSpace is excited to continue to be one of India’s key infrastructure creators.”
About CPP Investments
Canada Pension Plan Investment Board (CPP InvestmentsTM) is a professional investment management organization that manages the Fund in the best interest of the 21 million contributors and beneficiaries of the Canada Pension Plan. To build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. As per September 30, 2022, the Fund totalled C$529 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Facebook or Twitter.
IndoSpace (www.indospace.in) is the largest investor, developer, and operator of grade A industrial and logistics real estate in India. IndoSpace has the largest national network of 50 logistics parks with 56 million square feet delivered/under development across 10 cities. With India’s largest and most experienced industrial real estate team, IndoSpace continues to lead the development of key logistics infrastructure for India’s economic growth. For more information, visit www.indospace.in and follow us on LinkedIn, Twitter, and Facebook.
SOURCE Canada Pension Plan Investment Board
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/January2023/30/c6051.html
Zacks Investment Ideas feature highlights: Meta Platforms, Alphabet, Snap, Oracle and Global Social Media ETF
For Immediate Release
Chicago, IL – January 30, 2023 – Today, Zacks Investment Ideas feature highlights Meta Platforms META, Alphabet GOOGL, Snap Inc SNAP, Oracle ORCL and Global Social Media ETF SOCL.
TikTok Ban Coming: 3 Stocks That Would Benefit
The Social Media Landscape Is Evolving
The social media landscape has changed dramatically over the past few years with the rapid ascent of the personalized video platform app TikTok. Despite TikTok’s rapid rise, Meta Platforms and Alphabet are still the dominant players. In terms of monthly active users, three Meta platforms make up the top four rankings globally: Facebook (#1), Whatsapp (#3), and Instagram (#4).
Alphabet holds the second spot with its video platform Youtube and TikTok is ranked #6. Even with the continued dominance of existing players like META and GOOGL, stock performance has been lackluster in recent years. The Global Social Media ETF is the most followed social media ETF (note that it does not include TikTok).
What has Led to the Underperformance of Existing Players?
For one, Meta CEO Mark Zuckerberg is paying less attention to his lucrative social media business and instead investing valuable resources in what he sees as the future – the metaverse. Approximately 20% of Meta’s current investments are aimed at this project. While the bold bet has not panned out for Zuckerberg and Meta yet, he plans to stay the course.
The other major factor leading to the underperformance in domestic social media platforms such as Instagram, Youtube, and Snap Inc’s Snap Chat platform is TikTok’s success.
Chinese-based ByteDance launched TikTok in the United States in 2016, and since then, the platform has dominated. The app, which allows users to create and modify short-form videos, has caught on, especially with the younger generation. TikTok’s competitors have noticed. To win eyes back, Instagram has launched “Reels” and Youtube has created “Shorts” –aimed at users who prefer short, customizable videos like Tik Tok.
SnapChat, already in the short video space, has suffered the most from TikTok’s rise.
National Security Concerns
Though TikTok is one of the dominant global social media players and shows little signs of slowing growth – other factors may play a significant role in the social media space moving forward. Concerns are growing that ByteDance is collecting unnecessary personal data on its users and possibly supplying it to the Chinese government (the biggest rival of the U.S.).
Former President Donald Trump attempted to ban TikTok in 2020, but ultimately the app was able to remain active. The Biden administration struck down the potential Trump ban on TikTok but ordered a national security investigation.
A Potential Catalyst for Domestic Social Media Platforms
Even with the failed TikTok bans of the past, momentum is growing for a new possible attempted ban. In the past year, FBI director Christopher Wray, FCC Commissioner Brendan Carr, and Senator Josh Hawley have called for a domestic TikTok ban. Meanwhile, several U.S. colleges have implemented their own bans (via WiFi) amid security concerns.
Tuesday, Josh Hawley announced he would introduce a bill to ban the app. Investors who follow the social media space should keep a close eye on how the efforts to ban the app play out. If the app is ultimately banned, SNAP will benefit the most, along with META and GOOGL. Software giant Oracle, which supports TikTok via its cloud platform, would stand to lose.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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ChatGPT explains Warren Buffett's investing strategy, names stock picks – Markets Insider
- Insider’s Phil Rosen asked ChatGPT to explain Warren Buffett’s investing strategy.
- The viral language tool shared how value investing has given Buffett an edge, and broke down his best investment decision.
- The bot also named two potential stocks that would align with Buffett’s strategy.
As it turns out, OpenAI’s viral language tool fared well in its breakdown of Warren Buffett’s investing approach, too.
I asked ChatGPT to explain the Oracle of Omaha’s most important strategy that helped him reach his legendary billionaire status, and within seconds the bot spat out an analysis of value investing.
“Warren Buffett’s most important investing strategy is value investing, which involves identifying undervalued companies with strong potential for growth and a durable competitive advantage, and then holding onto those investments for the long-term,” ChatGPT said. “He also follows a principle of investing in businesses he understands, with a focus on companies with predictable earnings and a strong track record of increasing profits.”
That said, when I inquired what Buffett’s most important decision has been in his career, ChatGPT pointed to his investment in Berkshire Hathaway decades ago. Buffett “transformed it into a holding company and used it as a vehicle to make a series of successful investments and acquisitions,” the bot said.
ChatGPT’s stock picks for Buffett
To fully carry out the interrogation, I tasked ChatGPT with naming stocks that Buffett could add to his portfolio.
While the bot doesn’t have access to real-time markets data and its knowledge only goes up to 2021, it had plenty of historical intel to work with, given Buffett’s long career.
It named PepsiCo and Unilever as stocks that would make sense for Buffett to invest in, given they’re consumer goods companies with strong brand recognition and consistent revenue growth. Buffett famously consumes five cans of Coke a day, but he had been a Pepsi drinker for nearly 50 years before that.
As for Unilever, Buffett had come close to sealing a deal on the company along with Kraft Heinz in 2017, but it eventually fell through.
ChatGPT also named Amazon, which Buffett already owns, and Microsoft, which Buffett owns an indirect stake in via ownership of New England Asset Management, as two examples of blue-chip companies with a track record of innovation.
Then it listed Johnson & Johnson and Pfizer — Buffett owns the former, and has previously owned the latter — as two stable healthcare options that would fit Buffett’s strategy.
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