Looking at natural gas and crude oil prices, we should see elevated numbers and that definitely will eat into corporate earnings,” he adds. A head of a bank-backed research house who declined to be named thinks the strong rebound in the US markets is not justified in the face of corporate earnings risk. He says investors could consider tech stocks if there is any pullback, as they benefit from a weak ringgit and strong earnings by US tech giants. However, he stresses that the upside in tech stocks is dependent on the Nasdaq, whose valuation has come down because of the US tapering interest rate hikes. He cautions that investors need to be vigilant when it comes to investing in plantation stocks.

Source: The Edge Markets August 15, 2022 18:04 UTC