Global markets continue to experience significant volatility, presenting a new mix of challenges and opportunities for investors. According to Mark Baribeau, Head of Global Equity at Jennison Associates and Portfolio Manager of the PGIM Jennison Global Equity Opportunities Fund, current conditions underscore the importance of consistently focusing on innovation-driven growth while maintaining the flexibility to adapt as ongoing trends evolve.
He makes the case using AI’s continued rise as an example. Given their relatively modest development costs, generative AI models introduced by Chinese startup DeepSeek challenge previous assumptions regarding capital required to build out AI-related infrastructure. Still, rather than dwelling on that uncertainty, Mark notes the positive implications for improving speed to market for next-generation AI applications amid widespread demand, offering an opportune pivot point for investors.
Beyond AI, Mark highlights the U.S.’s ongoing strength as a hub for disruptive innovation as demonstrated by companies that enjoy world-leading revenue, earnings, and free cash flow generation. He also sees growing opportunities in China’s private sector, particularly in electric vehicles, autonomous driving, and edge-device AI integration.
Other secular growth trends Mark considers attractive targets include direct-to-consumer business models, internet-based platforms, and Latin America’s fintech growth. Companies that are vertically integrated and deliver bespoke consumer experiences are outperforming competitors. Similarly, homegrown fintech platforms in emerging markets are solving local challenges with innovative financial products, offering consistent long-term growth opportunities.
Ultimately, the secret is staying grounded in conviction. By taking calculated positions in businesses with strong secular demand and differentiated business models, Mark and his team stay focused on uncovering the next decade’s winners even as near-term uncertainty mounts. Access the accompanying video for Mark’s entire interview.
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