Newberg CIO: AI Concept Stocks Face "Indiscriminate" Selling, Actively Managed Funds Embrace "Golden Window" Layout

Shannon Saccocia, Chief Investment Officer of Nuveen, believes that the recent market selloff of stocks related to artificial intelligence is too broad and shows a clear emotional response. In an interview, Saccocia stated that anything "related to AI or potentially disrupted by AI" has been sold off, with investors overly focusing on disruptive risks and ignoring the growth opportunities hidden within, "this indiscriminate selling is somewhat unfair." She pointed out that this widespread selloff actually creates an important opportunity window for active fund managers to select companies with real competitive advantages. "The so-called indiscriminate selling actually provides an opportunity for active stock picking, we are truly looking for companies that can implement AI and build competitive barriers with it." She said that this is one of the important investment themes for Nuveen this year. Currently, Nuveen maintains an overweight position in non-tech sectors, including small-cap stocks (SPSM.US, SP600, IWM.US) and some cyclical industries. Saccocia specifically mentioned that the energy (XLE.US), materials (XLB.US), and real estate sub-sectors (XLRE.US, IYR.US, VNQ.US) have shown strong momentum recently, "these sectors are significantly underweighted in the portfolios of most US investors," and she recommends investors break free from traditional benchmarks. Regarding the software industry (IGPT.US, XSW.US, IGV.US), which is generally pessimistic, Saccocia holds a different view. "It seems like now everyone thinks, or to some extent investors think, that this race is full of losers," she bluntly stated. She suggested focusing on software companies that are "deeply embedded in the customer experience process," rather than just providing standardized subscription services. In her view, the key to resisting disruption lies in whether a company has consultative service capabilities and multiple customer touchpoints. More importantly, "we are looking for companies that have integrated AI into their solutions, they can use external AI power to take the lead and outpace disruption." Looking ahead, Saccocia believes that even if monetary policy does not loosen, the current cyclical rebound still has sustainability. She urges investors not to overlook the diversification value of small-cap stocks and overseas markets, "economic momentum and cyclical recovery are still ongoing, investors should be prepared for this."