Software Selloff Is a Chance to Increase Exposure: Lombard Odier

Group 1 - The software as a service sector experienced significant selling pressure, but a short squeeze occurred by the end of the week, suggesting a potential recovery for investors [1] - Concerns about disruption in software companies are countered by the view that advancements are empowering these companies and improving coding efficiency [2] - The software sector presents investment opportunities, particularly in cloud infrastructure and subsectors like cyber defense, which may contribute to a broader rally in US stock markets [3] Group 2 - The macroeconomic data for 2025 has exceeded expectations, leading to an upgraded outlook for global growth in 2026, which is favorable for various sectors, particularly materials [5] - The materials sector, especially metals, is highlighted as a strong investment opportunity alongside healthcare, indicating a positive earnings trend across multiple sectors [6] - European equities are facing a mixed outlook, heavily reliant on financials and industrials, with analysts downgrading profit estimates more frequently than upgrading [7][8] Group 3 - Asian markets, particularly Japan, are showing positive surprises, supported by political clarity regarding economic policy, which bodes well for continued earnings growth [9]