At an age where massive amounts of information travel at the speed of light, it’s easy to forget that essential physical systems can be highly fragile. The effective closure of the Strait of Hormuz has made this glaringly obvious, with an oil shock reverberating through industries.

More expensive crude tends to raise prices universally, and the consequent hawkish outlook for Fed Fund rates act as tailwinds to yield and interest-earning insurers and banks. Because oil value chains are so complex, n+1 order effects from an oil shock are difficult to predict—and one should be on the lookout for signs of high crude prices compounding an already slowing economy.

That said, the AI trade continues in defiance of the global outlook, with investor attention broadening out to Asia and across industries like data centres, semiconductor equipment makers, and even utilities.

WhiIe the oil taps have been turned off, capital continues to flow. This issue of the CIO Industry Guide highlights the bright spots for you during this uncertain time. Enjoy the read.

Earnings Boost

Technology, healthcare, and industrials reported the highest positive earnings surprises during the 3Q reporting season. S&P 500 is poised for a robust earnings growth of c.26% in 2026.

AI Supercycle Rolls On

Technology remains the standout for inflows, driven by enduring conviction in the AI buildout while industrials emerge as a strong second, benefitting from infrastructure expansion.

AI Enablers

As AI leaders consolidate, interest is rotating into enablers across the broader AI value chain, such as data centres, semiconductors (equipment makers and memory), utilities, and oil & gas.

Cash Flow is King