In a shaky economy, target sectors with earnings growth, like AI – BlackRock

BlackRock said Wednesday that investors should remain selective in the current market environment, given that Q3 earnings figures have shown signs of stalling. The firm pointed to segments like tech and artificial intelligence as potential sources of growth.

“Markets see modest earnings growth in Q3 reporting underway, after earnings were flat for a year. That doesn’t reflect the market narrative of a resilient economy, in our view,” BlackRock, the world’s largest asset manager, stated. “Markets see renewed earnings growth over the next year. We see earnings flatlining through year-end.”

BlackRock said it favors areas such as tech and artificial intelligence as it says AI is a mega force: “We favor sectors where earnings are growing, like tech, and harness the artificial intelligence mega force where we see more potential for earnings growth.”

Blackrock rounded out its comments by saying earnings figures have stagnated along with the broader economy. “Markets expect a pickup starting with Q3 reporting underway. We are cautious.”

For investors with a similar view of the market, here are several AI-focused exchange traded funds:

• GX Artificial Intelligence & Tech ETF (NASDAQ:AIQ)
• GX Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ)
• ALPS Disruptive Technologies ETF (DTEC)
• Goldman Sachs Innovate Equity ETF (GINN)
• iShares Robotics and Artificial Intelligence Multisector ETF (NYSEARCA:IRBO)
• Artificial Intelligence and Robotics ETF (NASDAQ:ROBT)
• iShares U.S. Tech Breakthrough Multisector ETF (TECB)
• iShares Exponential Technologies ETF (XT)
• Robo Global Artificial Intelligence ETF (THNQ)
• Roundhill Generative AI & Technology ETF (CHAT)