Emerging-market returns have been dominated by three technology ‘tigers’: TSMC, Samsung Electronics and SK Hynix. The rapid growth of these semiconductor heavyweights has rewarded investors, but it has also made the benchmark increasingly dependent on a narrow trade.
Managing AI risk without missing opportunity
As the saying goes, the difficulty with riding a tiger lies not in getting on, but in getting off. After several years of strong technology-led returns, recent bouts of volatility have made investors increasingly anxious about the eventual dismount.
The pullback in AI-related hardware stocks has intensified that debate. The current investment cycle is already operating on a scale that surpasses the dotcom era. Active investors should use periods of strength to take profits and diversify. But there are also reasons to remain invested. The challenge is managing risk without losing exposure to one of the most powerful investment themes of the decade.
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