Recently, the Chief Strategist of Pictet Asset Management, Luble, published the investment outlook for February. Luble believes that as inflation continues to slow down and economic growth remains resilient, there are strategic investment opportunities in the stock market. The global economic performance at the beginning of 2024 looks quite optimistic, as the cooling inflation makes it reasonable to relax monetary policy and cut interest rates, while economic growth remains resilient, making the market increasingly optimistic about avoiding a hard landing for the economy. As cash becomes less attractive after the implementation of interest rate cuts, global stock ratings have been upgraded to "overweight" and cash is relatively reduced, while maintaining a "neutral" view on bonds. According to Pictet Asset Management's leading global business cycle indicator, it is expected that the growth rate of developed economies in 2024 will be 0.9%. The bank's liquidity analysis shows that by the end of the first quarter of 2024, liquidity will continue to support the upward trend in the stock market, especially in the US stock market. The Federal Reserve's quantitative tightening policy has not been effective, as financial institutions withdraw excess cash stored at the Fed, significantly offsetting the effect of quantitative tightening. However, Luble believes that when the US Treasury shifts its debt issuance focus to longer-term bonds rather than short-term Treasury bills, the situation may change and is expected to occur in the second quarter of this year. Overall, given that the earnings reports released by US companies so far this year meet the expectations of Pictet Asset Management, it shows that US companies are in the early stages of profit recovery, with this recovery expected to last throughout the year. With the US economy still showing resilience, the profit growth forecast for US companies this year has been revised from a previous 2.5% to 4.3%. Currently, Pictet Asset Management has adjusted the allocation of US stocks to "neutral," but below "overweight." As the risk premium on US stocks remains depressed and there are risks of slowing household spending and business investment, investment opportunities in other developed markets such as Japan and Switzerland may be more attractive. Pictet Asset Management will continue to increase its holdings of US government bonds, with the model showing that the yield on the 10-year US Treasury bonds will decrease by another 20 basis points by the end of 2024. At the same time, the bank will also increase its holdings of emerging market local currency bonds, as the expected interest rate cuts by the Federal Reserve and the interest rate differential to some extent offset the risks of underperformance of these assets since the beginning of the year. In terms of sectors, Pictet Asset Management has upgraded the Information Technology (IT) industry to "overweight." With the overall economic growth revised upwards in 2023 and 2024, the profit growth prospects for this sector are the most eye-catching. In addition, IT sector companies benefit from the growth opportunities brought about by AI development, making their high valuations reasonable. The Communication Services sector is also favored, as these companies are related to the AI theme and have more reasonable valuations. Furthermore, the rating for energy stocks has been downgraded from "overweight" to "neutral," no longer considering oil stocks as having trading value as a hedge against Middle East geopolitical risks.