AI Identified Opportunities:
Domestically we saw a shift in labor market demand from Covid impact on the workforce. The most in-demand positions when aggregating job openings are nursing and healthcare support. Given healthcare sector labor shortage, healthcare innovation is forecasted to see increased demand. From an investment perspective we saw constructive signals around names like Danaher (DHR), and Dexcom (DXCM) enter into AI investment portfolios.
Delta variant cases in the workplace have stalled “return to office” initiatives for many companies. This development has increased opportunities for hybrid and remote working arrangements and continues to be a driver for real estate demand into Q3.
Technology solutions also continue to benefit from the constantly changing workplace conditions. Alphabet, Atlassian Corp, and WIX.com are a few of the highest scoring technology names with demand for digital advertising, productivity tools, and cloud based solutions continuing to grow.
AI Identified Key Risks:
We see continued negative news for cruises. Most recent negative sentiment piece was distributed by the CDC with warnings of high risk/severe Covid outbreak potential. The Delta Variant has pushed out the recovery timeline for normalized operations in many travel related businesses including hotels, oil & gas, and transportation.
Back to School Blues – youth PPE purchases became an added item for back-to-school shopping lists. High negative social media sentiment in postings containing school Covid safety information. There have already been thousands of youth negatively impacted by Covid (sick or exposed) during this first week back to the classroom.
While Afghanistan news dominated headlines for the past week, Covid Delta variant risk remains a top risk factor for business disruption and downside market volatility in the US. Globally our system signals show the Delta variant dragging most on emerging market economies while the UK and other foreign developed markets are forecasted to adapt and recover more quickly.