The second quarter of 2023 saw US equities climb higher powered by large cap growth companies leveraged to the AI (Artificial Intelligence) theme. A pickup in soft-landing expectations seemed to be among the more powerful tailwinds for equity markets.
Unveiling Insights from Changes in Active Risk Exposure, Sectors, and Companies During the Annual Style Rebalance | The significant surge in index turnover during 2022 prompted an investigation into the underlying catalysts. By examining alterations in active exposure, sector dynamics, and the most notable movements of companies, valuable insights can be gleaned regarding the evolving nature of the index.
US equities were generally higher in the first quarter of 2023, but intra-quarter performance was mixed. The S&P 500 gained for a second straight quarter and got off to a strong start with over 6% returns in January, its best January since 2019.
As we move forward into 2023, what happens in financial markets will be determined by the interplay of two primary factors – inflation and economic growth.
This post explores the reasons behind the growing popularity of Artificial Intelligence (AI) and Machine Learning (ML), the opportunities that are available in using these techniques for ESG investing and the challenges encountered in using them.