The US Federal Reserve’s bumper 50-basis-point interest rate cut has been the talk of the market as investors assess sectors and stocks. Kingsley Jones, chief investment officer at Sydney-based Jevons Global, said the rate cut had “supported the market.” “At this point, there is some concern that if the Fed goes with a jumbo that the market may panic a bit and say the Fed knows something we don’t know. But it seems, it is also telegraphed in the market and I think it meets expectations,” he added. Bullish in defense Against the background behind this, Jones, who is also the founder of Jevons Global, steers clear of the hotly watched tech sector and focuses on defense. “Technology has been a great 10 years, including the latest AI boom. We think that earnings momentum has been slowing,” he said. Big Tech plays like chipmaker Nvidia have “become smaller and smaller beats on estimates,” Jones noted. “I think the momentum has faded. But let’s face it, US investors have made a lot of money and global investors in these technology stocks, so we think people will increase their positions to other stocks.” Speaking to CNBC’s “Asia Road Sign” on September 24, the investment expert noted “the rotation sectors that are clearly starting to happen now,” with sectors like utilities and health care. Those sectors have gained traction amid attractive valuations in technology and falling interest rates, Jones said. Among the stocks he likes is health insurer UnitedHealth , due to the large cost of health care in the United States, relative to gross domestic product. Jones sees the company benefiting from the “lack of cost control in the system.” The CIO is also watching the pharmaceutical space, naming biotech player AbbVie Inc as a preferred stock Elsewhere, Jones is bullish on consumer plays like Walmart and Costco, which he sees as “good options in a falling interest rate environment.” There is one tech company he likes, though. It is the computer technology giant Oracle, although it has been “playing catchup (and) not everyone’s favorite for a long time.” The company recently raised its fiscal 2026 revenue forecast to at least $66 billion, more than the $64.5 billion LSEG analysts were expecting. Jones increased his position in the stock because it has become a “primary recipient of artificial intelligence” such as through cloud infrastructure. Avoiding semiconductor equipment Jones avoids sectors such as semiconductor equipment where companies have been spending more, following interest in building AI infrastructure and chip factories. He warned about the impact of US sanctions on semiconductor equipment. “So every time there are new sanctions, China just pulls in a lot of costs to get around it … And we think that (semiconductor equipment players) are running out,” Jones said. “So, I would avoid trading the semi-equipment sector,” he said.
Here’s how one CIO is positioned after the rate cut
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