E Fund CIO: Tech Fundamentals to Drive Markets Amid Tighter Macro
E Fund's Global Equity CIO Jeff Li says technology fundamentals will drive equity markets as the macro environment tightens, expressing cautious optimism for the sector.
Jeff Li, Global Equity Chief Investment Officer at E Fund Management (Hong Kong), said he expects technology fundamentals to drive equity markets as the macro environment becomes relatively tighter. Speaking on the sidelines of Bloomberg Invest Hong Kong, Li described current market sentiment as cautiously optimistic, with a focus on the underlying strength of tech companies rather than broad macroeconomic tailwinds.
The shift toward a tighter macro backdrop, including potential rate adjustments and reduced liquidity, typically compresses valuation multiples across the equity market. However, Li argues that technology firms with strong earnings growth, robust balance sheets, and pricing power can outperform in such an environment. This view aligns with the historical pattern where sector rotation favors quality growth stocks during late-cycle phases. For traders monitoring real-time stock quotes on NowPrice, the technology sector's relative resilience may present opportunities, especially if earnings season confirms the fundamental strength Li highlights.
Looking ahead, investors will watch key data releases including upcoming inflation readings and central bank commentary for clues on the pace of tightening. Li's cautious optimism suggests that while macro headwinds persist, stock selection within technology remains critical. The interplay between earnings yield and bond yields — the so-called Fed model — will likely determine whether equities can sustain their current valuations. For now, the focus remains on company-specific fundamentals as the primary driver of market direction.