Stocks have responded positively to recent economic data and the Federal Reserve’s major decision to suspend interest rate hikes in December. But will it continue, and is there uncertainty heading into 2024?
“I would say the market environment, the economy, is pretty optimistic right now,” Scott Stuart, founder and managing partner at Sageview Capital, told Yahoo Finance. He talked about trends in technology and software that could potentially circumvent gender.
For more expert insights and the latest market trends, click here to watch the full episode of Yahoo Finance Live.
video transcript
Sheena Smith: We’d like to join Scott Stewart, founder and managing partner of Sageview Capital, to weigh in on what we can expect as we head into 2024. Scott, it’s great to be here. So let’s talk a little bit about the uncertainty that you’re all concerned about. How are your investment plans shaping up for the new year?
Scott Stewart: wonderful. Thank you for having me on board. In other words, we are individual investors. We try not to focus too much on the macro. However, it can be said that the market environment and economy are currently quite optimistic. The latest report from the Federal Reserve, the latest report from many Wall Street analysts on expectations for rate cuts, all of which have turned a headwind since March 2021 into a tailwind. For our company, I can say that business is starting to pick up. Our company is mainly software. And it definitely feels like we’ve hit rock bottom. And we are actually seeing an upturn in business. This is our outlook from the ground. I think this is a little bit in line with what people are saying about the general market and the general economy.
Brad Smith: This is interesting. In particular, on the business side of the software companies we spoke to, even earlier this week, it sounded like there was some uncertainty about what the next phase of spending trends would be from some of their portfolio customers. It’s a body. Year. Where are you surfing the internet? And ultimately, how will that be reflected in some of the ratings as well?
Scott Stewart: Well, I think the software market is not one company. For example, there are companies that have demonstrated demonstrable returns on investment for their customers. They save companies money. They improve his ESG status. Companies like Drivewise sell software to truckers to help them avoid weigh stations. This means trucking companies can save significantly on labor and fuel. It’s also good for the environment. That’s good for the bottom line. We also have a company called Specright that sells product specification software to large companies that make things. Again, this reduces costs and increases ESG reporting.
So I think that kind of business will do well even in a tougher environment. Some marketing, advertising, and start-up companies have found that their customers are very cautious about purchasing their software.
Sheena Smith: Scott, tell us a little bit more about your investment criteria. I know you’re very picky about companies when you’re trying to identify attractive stocks in this current environment, but what are your investment criteria looking ahead to 2024?
Scott Stewart: of course. The first thing I want to say is that investing in technology companies is great because there is truly an endless supply of new ideas. We’ve been riding the software wave since we started our company. And software is just a better technology that can produce better results at a lower cost. I don’t think that wave will slow down at all. I think that’s a long-term trend and will continue. Many of these trends will be exacerbated by AI. Although still in its early stages, our companies are already seeing the ability to adopt AI to reduce costs. You can replace people, and you can generate content more cheaply. So we’re already seeing something like an impact on the back office. And now we’re looking at what AI can do for companies looking to grow faster.
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