Zak Smerczak’s perspective on global markets
In his in-depth analysis, Zak Smerczak, analyst and manager of the Comgest Growth Global fund, highlights how global stock markets experienced significant volatility in October. Political developments, economic adjustments, and third-quarter earnings reports were the main drivers of market performance.
The U.S. market benefited from an unexpected rate cut by the Federal Reserve, solidifying its role as a global leader. Conversely, Japan faced political uncertainty due to early elections, while Europe reported mixed corporate earnings and heightened intraday volatility above historical averages.
Semiconductors and AI: TSMC’s strategic role
Smerczak focuses on the semiconductor sector, citing TSMC, the world’s largest producer, as a key player. The company reported strong quarterly results and revised its revenue growth forecast for 2023 to 30%. This adjustment reflects stabilizing end markets and sustained demand for artificial intelligence (AI) technologies.
According to Smerczak, TSMC’s strategic position underscores the critical importance of semiconductors as a driving force for technological advancement and global economic growth.
Resilient sectors: digital payments and cloud technology
Smerczak’s analysis also highlights the resilience of other critical sectors. Visa, the global leader in digital payments, reported steady growth and robust global demand for its services.
Similarly, Alphabet, Google’s parent company, demonstrated strong revenue growth in its Cloud division, emphasizing the central role of advanced technology services in today’s economy.
Future outlook: geopolitical and macroeconomic risks
Zak Smerczak forecasts continued volatility, driven by geopolitical tensions in the Middle East and Ukraine, and uncertainties about growth sustainability in key sectors. His analysis points to semiconductors, AI, and consumer spending as areas of focus, with markets seeking stability and new investment opportunities.
