Global stocks, especially on the US exchanges, could hit an all-time high in the second quarter as investors are expected to embrace riskier assets after concerns ease over the Federal Reserve's interest rate actions, says Thai wealth management platform Finnomena.
Jessada Sookdhis, chief executive and founder of Finnomena Group, said investor anxiety about a Fed rate hike has declined, as they hope for a rate cut soon.
Now is a good time for investors to accumulate global growth stocks, particularly those with artificial intelligence (AI) themes, as there is a limited chance US stocks will face selling pressure in May, he said.
"Statistics show if you invest in the S&P 500 in May, one year later the return averages 10%. That means there is opportunity to buy in May," said Mr Jessada.
"We recommend investors look for opportunities to accumulate stocks, increasing their weight to around 80% of the portfolio."
As the investment atmosphere begins to mellow, stock markets are entering an uptrend, supported by investor confidence as the Fed stated it has no plans to raise interest rates anytime soon, he said.
That statement prompted investors to believe US rates would be cut in the near term, said Mr Jessada.
Another positive factor is inflationary pressure started to ease as oil prices paused, with the US pumping more oil, while the likelihood of more US-led sanctions on Iran is low, he said.
Listed US companies have continued to perform well based on their first-quarter earnings, especially large technology companies.
"Finnomena emphasises counter-market strategies by searching for good, cheap assets when other people aren't looking," said Mr Jessada.
"We expect global stocks, led by the S&P 500, to hit a new all-time high in the second quarter."
Among global growth stocks, Finnomena believes those with AI themes hold the most promise, he said.
The platform also introduced two funds for investors willing to accept risk.
The first is the Tisco AI & Big Data Fund (TISCOAI fund), which invests in companies that own patents for AI and big data technology on the Nasdaq.
The other is the Mega 10 Artificial Intelligence Fund (MEGA10-A fund), which focuses on 10 global brands with high liquidity to capitalise on the buoyant market.