Rob Hinchliffe, portfolio manager and global sector head of research at Baillie Gifford, and his team have released the mid-term stock outlook for 2024. The firm believes that the second half of 2024 is a good time for companies benefiting from long-term trends, including artificial intelligence innovation, net zero emissions and green energy spending, electric vehicles (batteries and other components), as well as treatments for cancer, rare diseases, obesity, and diabetes. Brief periods of overly negative market sentiment may present opportunities for high-quality companies with strong business models and future growth prospects. Baillie Gifford points out that many trends that emerged during the pandemic have gradually eased: consumers' accumulated excess savings have been depleted, industry backlogs and supply issues are being resolved, and prices are starting to fall. However, this new normal does not mean that the market will return to its pre-pandemic state. Continued technological innovation and the trend of near-shore outsourcing have thoroughly reshaped the market landscape. Baillie Gifford states that while other countries are cutting production, China is accelerating the production of cars and batteries. Companies providing electric vehicle connectivity technology globally are doing particularly well, especially those with close ties to the Chinese market such as South Korean companies. Despite European and American car manufacturers delaying their investments in electric vehicles, concerns about a slowdown in the penetration rate of electric vehicles have not had a significant actual impact, as the Asian market continues to dominate the electric vehicle industry and the penetration rate in developed markets is still increasing, albeit at a slower pace than expected.