42 downturn-resistant stocks to help you sleep at night: Bank of America

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• The S&P 500 has seesawed after a disastrous start to August.
• Investors should expect more volatility, according to Bank of America.
• Here are 42 high-quality, stable stocks to buy during this stressful stretch.

Bank of America's top US equity strategist is staying calm even though the market isn't.

US stocks are coming off the largest volatility surge since the onset of the pandemic, but BofA strategists led by Savita Subramanian believe calls for a crash are misplaced.

"A full-fledged bear market (i.e., 20%+ drop) is unlikely: just 50% of the signposts that historically preceded S&P 500 peaks have been triggered vs. an average of 70% ahead of prior market peaks," Subramanian, who's BofA's head of US equity strategy, wrote in a recent note.

The S&P 500 has fallen as much as 8.5% from its mid-July peak, which caught many investors flat-footed after an excellent six-and-a-half-month stretch to start the year.

However, Subramanian noted that such a pullback isn't out of the ordinary. A typical year contains a 10% correction and three separate 5% selloffs, based on BofA data since 1930.

Bank of America

"Larger corrections are less frequent but still common, with 10%+ corrections occurring once a year on average (the last one was in fall 2023), 15%+ corrections occurring once every two years on average, and 20%+ corrections (i.e., bear markets) occurring once every 3-4 years on average," Subramanian wrote.

With that in mind, US stocks were "effectively due" for a drawdown, Subramanian wrote. So when July's jobs report disappointed and the Federal Reserve declined to cut interest rates while Japan's central bank hiked, investors fled for the exits, causing volatility to spike.

42 stable stocks to buy in a wild market

Even after the early-August market meltdown, Bank of America strategists are sticking with their year-end S&P 500 price target of 5,400, which is roughly 3.4% above where the index is trading.

But although the US economic expansion will likely continue, Subramanian wrote that investors should brace for continued volatility — especially in an election year.

Bank of America

The CBOE Volatility Index, or VIX, is well off its historic highs from earlier this week but remains elevated, and its current level signals that the S&P 500 will move 1.8% per day going forward.

In this turbulent backdrop, Subramanian urged clients to take a cautious approach — especially with the mega-cap technology stocks getting crushed in this selloff, given that their earnings growth is slowing while firms outside of the Magnificent Seven are seeing their profits surge.

Instead, the lead strategist recommends shifting toward stocks that others may view as boring. That includes large, value-oriented companies; dividend payers; firms that will benefit from capital expenditures unrelated to artificial intelligence; and high-quality stocks.

"The highest-quality stocks tend to outperform as the VIX rises while the lowest-quality stocks tend to lag the most," Subramanian wrote.

To that point, Bank of America shared a list of stocks designed to help investors "sleep at night." These companies all have buy ratings from BofA; are stable relative to the broader market, as measured by their five-year beta; are high quality, according to S&P Global; and have upside since they're underrepresented in long-only funds.

Below are the 42 stocks that fit that description listed in alphabetical order, along with the ticker, market capitalization, sector, industry, five-year beta, S&P quality rating, and relative weight in long-only funds for each. All have a five-year beta at or below 1 and a B+ quality rating or better.

1. Aflac

Markets Insider

Ticker: AFL

Market cap: $55.5B

Sector and industry: Financials; Insurance

Five-year beta: 0.95

S&P quality rating: A

Long-only relative weight: 0.02

Source: Bank of America

2. Air Products and Chemicals

Markets Insider

Ticker: APD

Market cap: $62B

Sector and industry: Materials; Chemicals

Five-year beta: 0.82

S&P quality rating: A

Long-only relative weight: 0.83

Source: Bank of America

3. Akamai Technologies

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Ticker: AKAM

Market cap: $14.1B

Sector and industry: Information Technology; IT Services

Five-year beta: 0.67

S&P quality rating: B+

Long-only relative weight: 0.19

Source: Bank of America

4. Alliant Energy

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Ticker: LNT

Market cap: $14.4B

Sector and industry: Utilities; Electric Utilities

Five-year beta: 0.56

S&P quality rating: A

Long-only relative weight: 0.14

Source: Bank of America

5. Assurant

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Ticker: AIZ

Market cap: $8.9B

Sector and industry: Financials; Insurance

Five-year beta: 0.54

S&P quality rating: B+

Long-only relative weight: 0.09

Source: Bank of America

6. AvalonBay Communities

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Ticker: AVB

Market cap: $29.6B

Sector and industry: Real Estate; Residential REITs

Five-year beta: 0.97

S&P quality rating: B+

Long-only relative weight: 0.04

Source: Bank of America

7. Ball Corporation

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Ticker: BALL

Market cap: $19.2B

Sector and industry: Materials; Containers & Packaging

Five-year beta: 0.85

S&P quality rating: A-

Long-only relative weight: 0.58

Source: Bank of America

8. CBOE Global Markets

Markets Insider

Ticker: CBOE

Market cap: $21.2B

Sector and industry: Financials; Capital Markets

Five-year beta: 0.65

S&P quality rating: B+

Long-only relative weight: 0.05

Source: Bank of America

9. CH Robinson Worldwide

Markets Insider

Ticker: CHRW

Market cap: $11.6B

Sector and industry: Industrials; Air Freight & Logistics

Five-year beta: 0.81

S&P quality rating: A-

Long-only relative weight: 0.03

Source: Bank of America

10. Cisco Systems

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Ticker: CSCO

Market cap: $183.3B

Sector and industry: Information Technology; Communications Equipment

Five-year beta: 0.84

S&P quality rating: B+

Long-only relative weight: 0.2

Source: Bank of America

11. CMS Energy

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Ticker: CMS

Market cap: $19.5B

Sector and industry: Utilities; Multi-Utilities

Five-year beta: 0.38

S&P quality rating: A

Long-only relative weight: 0.55

Source: Bank of America

12. Coca-Cola

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Ticker: KO

Market cap: $295.3B

Sector and industry: Consumer Staples; Beverages

Five-year beta: 0.59

S&P quality rating: B+

Long-only relative weight: 0.38

Source: Bank of America

13. Colgate-Palmolive

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Ticker: CL

Market cap: $84.3B

Sector and industry: Consumer Staples; Household Products

Five-year beta: 0.39

S&P quality rating: B+

Long-only relative weight: 0.64

Source: Bank of America

14. Consolidated Edison

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Ticker: ED

Market cap: $35.1B

Sector and industry: Utilities; Multi-Utilities

Five-year beta: 0.34

S&P quality rating: A-

Long-only relative weight: 0.01

Source: Bank of America

15. Costco Wholesale

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Ticker: COST

Market cap: $360.5B

Sector and industry: Consumer Staples; Consumer Staples Distribution & Retail

Five-year beta: 0.77

S&P quality rating: A

Long-only relative weight: 0.57

Source: Bank of America

16. Digital Realty Trust

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Ticker: DLR

Market cap: $48.2B

Sector and industry: Real Estate; Specialized REITs

Five-year beta: 0.6

S&P quality rating: B+

Long-only relative weight: 0.14

Source: Bank of America

17. Domino’s Pizza

Markets Insider

Ticker: DPZ

Market cap: $14.9B

Sector and industry: Consumer Discretionary; Hotels Restaurants & Leisure

Five-year beta: 0.87

S&P quality rating: A+

Long-only relative weight: 0.46

Source: Bank of America

18. Entergy

Markets Insider

Ticker: ETR

Market cap: $25B

Sector and industry: Utilities; Electric Utilities

Five-year beta: 0.71

S&P quality rating: B+

Long-only relative weight: 0.56

Source: Bank of America

19. Equinix

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Ticker: EQIX

Market cap: $74.5B

Sector and industry: Real Estate; Specialized REITs

Five-year beta: 0.68

S&P quality rating: B+

Long-only relative weight: 0.56

Source: Bank of America

20. Essex Property Trust

Markets Insider

Ticker: ESS

Market cap: $17.9B

Sector and industry: Real Estate; Residential REITs

Five-year beta: 0.87

S&P quality rating: A-

Long-only relative weight: 0.02

Source: Bank of America

21. Home Depot

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Ticker: HD

Market cap: $340.1B

Sector and industry: Consumer Discretionary; Specialty Retail

Five-year beta: 0.99

S&P quality rating: A+

Long-only relative weight: 0.64

Source: Bank of America

22. Jack Henry & Associates

Markets Insider

Ticker: JKHY

Market cap: $12.1B

Sector and industry: Financials; Financial Services

Five-year beta: 0.63

S&P quality rating: A

Long-only relative weight: 0.04

Source: Bank of America

23. Kimberly-Clark

Markets Insider

Ticker: KMB

Market cap: $47.2B

Sector and industry: Consumer Staples; Household Products

Five-year beta: 0.39

S&P quality rating: B+

Long-only relative weight: 0.39

Source: Bank of America

24. Kroger

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Ticker: KR

Market cap: $39.2B

Sector and industry: Consumer Staples; Consumer Staples Distribution & Retail

Five-year beta: 0.44

S&P quality rating: A-

Long-only relative weight: 0.32

Source: Bank of America

25. Lockheed Martin

Markets Insider

Ticker: LMT

Market cap: $131B

Sector and industry: Industrials; Aerospace & Defense

Five-year beta: 0.45

S&P quality rating: A

Long-only relative weight: 0.1

Source: Bank of America

26. McCormick & Company

Markets Insider

Ticker: MKC

Market cap: $21B

Sector and industry: Consumer Staples; Food Products

Five-year beta: 0.75

S&P quality rating: A-

Long-only relative weight: 0.53

Source: Bank of America

27. Medtronic

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Ticker: MDT

Market cap: $103.9B

Sector and industry: Healthcare; Healthcare Equipment & Supplies

Five-year beta: 0.83

S&P quality rating: B+

Long-only relative weight: 0.8

Source: Bank of America

28. M&T Bank

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Ticker: MTB

Market cap: $26.8B

Sector and industry: Financials; Banks

Five-year beta: 0.76

S&P quality rating: A-

Long-only relative weight: 0.33

Source: Bank of America

29. Packaging Corporation of America

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Ticker: PKG

Market cap: $17.4B

Sector and industry: Materials; Containers & Packaging

Five-year beta: 0.78

S&P quality rating: A-

Long-only relative weight: 0.05

Source: Bank of America

30. PepsiCo

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Ticker: PEP

Market cap: $237.6B

Sector and industry: Consumer Staples; Beverages

Five-year beta: 0.53

S&P quality rating: A-

Long-only relative weight: 0.41

Source: Bank of America

31. Pinnacle West Capital

Markets Insider

Ticker: PNW

Market cap: $9.7B

Sector and industry: Utilities; Electric Utilities

Five-year beta: 0.5

S&P quality rating: A-

Long-only relative weight: 0.96

Source: Bank of America

32. Procter & Gamble

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Ticker: PG

Market cap: $400.3B

Sector and industry: Consumer Staples; Household Products

Five-year beta: 0.4

S&P quality rating: A

Long-only relative weight: 0.4

Source: Bank of America

33. Public Service Enterprise

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Ticker: PEG

Market cap: $39.3B

Sector and industry: Utilities; Multi-Utilities

Five-year beta: 0.61

S&P quality rating: B+

Long-only relative weight: 0.47

Source: Bank of America

34. Quest Diagnostics

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Ticker: DGX

Market cap: $16.3B

Sector and industry: Healthcare; Healthcare Providers & Services

Five-year beta: 0.88

S&P quality rating: A-

Long-only relative weight: 0.33

Source: Bank of America

35. Republic Services

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Ticker: RSG

Market cap: $63.1B

Sector and industry: Industrials; Commercial Services & Supplies

Five-year beta: 0.7

S&P quality rating: A-

Long-only relative weight: 0.72

Source: Bank of America

36. ResMed

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Ticker: RMD

Market cap: $30.9B

Sector and industry: Healthcare; Healthcare Equipment & Supplies

Five-year beta: 0.66

S&P quality rating: A-

Long-only relative weight: 0.03

Source: Bank of America

37. Rollins

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Ticker: ROL

Market cap: $23.1B

Sector and industry: Industrials; Commercial Services & Supplies

Five-year beta: 0.7

S&P quality rating: A

Long-only relative weight: 0.03

Source: Bank of America

38. Starbucks

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Ticker: SBUX

Market cap: $85.6B

Sector and industry: Consumer Discretionary; Hotels Restaurants & Leisure

Five-year beta: 0.94

S&P quality rating: B+

Long-only relative weight: 0.7

Source: Bank of America

39. Walmart

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Ticker: WMT

Market cap: $538.1B

Sector and industry: Consumer Staples; Consumer Staples Distribution & Retail

Five-year beta: 0.5

S&P quality rating: B+

Long-only relative weight: 0.35

Source: Bank of America

40. West Pharmaceutical Services

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Ticker: WST

Market cap: $21.4B

Sector and industry: Healthcare; Life Sciences Tools & Services

Five-year beta: 1

S&P quality rating: A

Long-only relative weight: 0.44

Source: Bank of America

41. WR Berkley

Markets Insider

Ticker: WRB

Market cap: $21.3B

Sector and industry: Financials; Insurance

Five-year beta: 0.61

S&P quality rating: B+

Long-only relative weight: 0.03

Source: Bank of America

42. Xcel Energy

Markets Insider

Ticker: XEL

Market cap: $32.5B

Sector and industry: Utilities; Electric Utilities

Five-year beta: 0.38

S&P quality rating: A

Long-only relative weight: 0.67

Source: Bank of America

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My husband and I thought we wanted 2 kids, but having an only child made more sense for our family

Jen Hyde and her husband thought they wanted two kids, but they realized that having an only child works well for their family.

Photo Credit: Kimberly Pascale

• My husband and I both thought we wanted two kids.
• However, after our son was born, we realized that a family of three was the right size for us.
• Though we still sometimes think about the path we didn't take, we love our small family.

When I was young, I used to pretend I was a mom to twins. Alexander and Alexandria had faces I couldn't quite envision, but I shuttled them from one place to another in my bedroom. Back then, I knew a family of four was the cultural norm, even though I was an only child.

My parents had a good reason for our family size. I was born with congenital heart disease and had expensive open heart surgery as a toddler. We were a one-income family, so they fully invested in me. As a teenager, I traded playing house for summers at art camps in New York and the UK, where I wrote poetry and painted still lifes in oil. I learned to dream big and entered adulthood thinking I could be anything — an artist, a mother, anything. It was all on the table.

I met and married another artist. Although we worried about how parenting would alter our career goals, I couldn't imagine not having children with him. But if we started a family, he told me he wanted two kids. At first, the thought of having my childhood fantasy come to life felt like dumb luck. Yet, days after our son was born, I feared I could never love another child as deeply as I loved him. I told my husband, "I'm not sure I have the space in my heart for two."

Parenthood altered my relationship with my husband

When my son was a newborn, I had postpartum depression. By the time he was 1, the depression still hadn't subsided. My husband started an intensive project that provided significant financial stability. As a college professor, my summers, once reserved for creative projects, were reallocated to childcare.

I developed a deep knowledge base of kid-friendly activities and reigned over our domestic sphere. I felt like I'd traded my ambition for motherhood, and I resented the satisfaction my husband gained from his work even though it provided financial security for us.

When we initially discussed having two kids, we talked about having them three years apart, but by my son's 2nd birthday, this idea no longer appealed to me. I started to realize that while I originally worried about not having space in my heart for more than one child, it might be more accurate to say that more than one child might not leave me enough room to still love myself.

Jen Hyde says that having an only child gives her family more time to spend together.

Courtesy of Jen Hyde

We have so much as a family of three

Around my son's 3rd birthday, my best friend asked if we would have a second child. Whenever people asked this, I gave a pragmatic answer, citing financial constraints. But I knew she craved a deeper truth. "Being a trio is actually perfect," I said, unsure at first if I believed myself.

While the previous answers I'd given to this question had a ring of truth to them, they also weren't truly mine. They felt off-the-rack; they'd do in a pinch, but they weren't made for me. This answer felt tailor-made, and it fit perfectly. My son would start preschool in the fall, and I would regain time. I needed this time to nurture my ambition. I knew that growing into myself would make me a better partner and mother.

Later, I told my husband. He revealed he'd been working toward the same realization, though for him, it seemed like a more painful dream to let go of. He'd truly envisioned a future with two children, whereas, for me, it had been more abstract. Still, he said it before I could: "What we have is just as good."

The three of us have so much. We have the financial ability to pay for summer camps and vacations, invest in college savings, and buy a Bay Area home. We have time to work on our relationship and the capacity to help each other grow into ourselves for the rest of our lives.

This doesn't mean we don't mourn the path we didn't follow. Every artist knows you finish a piece because it is time to be done, not because it is perfect. There will always be some kind of void in our lives, but building around it together deepens our relationship. What we have to work with is becoming just as wonderful and big.

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A flashy CEO who claimed to be among Singapore's top 1% was planning the island's answer to Coachella. Now prosecutors have charged him with fraud, denied bail, and say he's a 'real flight risk.'

David Yong, 37 was featured in the Netflix series "Super Rich in Korea" as one of the "super rich" cast members. He was arrested by the Singaporean police on August 1 and was denied bail on Thursday.

Netflix

• Businessman David Yong, 37, has made big claims about his wealth.
• Yong claimed that he was the "top 1% super rich" in the Netflix series "Super Rich in Korea."
• The flamboyant businessman now faces multiple charges of fraud and has been denied bail.

Things aren't looking great for Evergreen Group Holdings CEO and K-pop enthusiast David Yong, 37.

The self-described "multi-hyphenate influencer CEO" was slapped with two additional charges in a Singapore court. He's been accused of abetting his employee, Jolene Low Mong Han, to falsify two company tax invoices back in December 2021, The Straits Times' Joyce Lim reported on Thursday.

Yong, who is also a lawyer, was first arrested on August 1. He was initially charged for instigating Low to falsify a company tax invoice in the same time period.

According to The Straits Times, Yong has been in remand at Singapore's Central Police Division since his arrest last week.

The businessman was denied bail on Thursday after prosecutors argued that he is a "real flight risk" who might abscond from the country, per The Straits Times.

This, the outlet said, was because Singaporean police investigations revealed that Yong had a Cambodian passport and identity card under the name "Duong Dara."

Prosecutors argued that Yong hasn't given the local police these Cambodian documents, and said he may use them "to flee if not further remanded."

The court on Thursday granted the prosecution's request to remand for seven more days. The case will be heard again on August 15.

Yong, who appeared in court via video link, said he renounced his Cambodian citizenship in early June.

In Singapore, adult citizens have to renounce their foreign citizenships if they want to retain their Singapore citizenship. Failure to do so could result in them losing their Singapore citizenship.

However, Yong's legal problems don't end there. On Saturday, the Singapore Police Force said that Yong and Evergreen Group Holdings are being investigated for possible fraud.

"Various companies under Evergreen Group Holdings were raising funds through the issuance of promissory notes that promised an annual interest of 10 per cent," the police said in a statement.

"Investigations arose due to the suspicion that investor monies were misused. In addition, these promissory notes may have been issued in contravention of the Securities and Futures Act," the statement continued.

This wouldn't be the first time Yong's financial dealings have drawn regulatory attention. Back in January 2023, Yong's company was placed under an investor alert list by Singapore's central bank, the Monetary Authority of Singapore (MAS).

When approached by Business Insider, the Singapore Police Force said it was unable to comment on the case at this juncture as court proceedings are currently ongoing.

Representatives for Evergreen Group Holdings didn't immediately respond to a request for comment from BI.

Courting fame and status in the Korean entertainment scene

It's unclear if Yong's detention will affect Waterbomb, a South Korean-themed music festival his company is co-organizing. It's scheduled to be held on Singapore's Sentosa Island from August 24 to 25.

The star-studded event is set to feature K-pop artists like Rain, Jay Park, and CL.

Waterbomb co-organizer Viu Scream Dates told Singaporean news outlet CNA Lifestyle on Monday that the "event would proceed as planned."

Notably, the company's spokesperson did not address CNA Lifestyle's query on whether Yong would be attending the event as originally planned.

Yong was a cast member in the Netflix series "Super Rich in Korea," where he grabbed headlines for big claims he made about his wealth.

"I'm Singapore top 1% super rich," the flamboyant businessman said while introducing himself in the series.

In the show, Yong gave a quick tour of his four-storey "villa house" that came equipped with a swimming pool and elevator.

Yong, however, wasn't the owner of the home that was featured on Netflix. He later admitted to The Straits Times that the property was actually a "temporary place" he'd rented.

For what it's worth, Yong's efforts to make a name for himself in the Korean entertainment scene have been going on for a while.

In 2022, Yong released his own Korean hip-hop music video titled "In My Pocket."

Yong told luxury lifestyle magazine The Peak in an interview published in May that his foray into K-pop was actually for business purposes rather than personal fame.

"How many people can call top celebrities or singers to come for dinner or to introduce them as partners? That kind of connection or network is not openly available to all," Yong told The Peak.

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Middle East wealth funds are scrambling to rescue their big bets on the future

Saudi Arabia's sovereign wealth fund has put more cash into EV maker Lucid.

Fabrice Coffrini/AFP via Getty Images

• Saudi Arabia and Abu Dhabi's sovereign wealth funds have had a busy few years.
• The funds have been on a huge investment spree beyond the Gulf, with tech a particular focus.
• Turns out not all those investments are quite going to plan.

On the global stage, few have been as active in flaunting their cash in recent years as the Middle East's most powerful money men.

Leaders of Saudi Arabia's Public Investment Fund (PIF) and Abu Dhabi's Mubadala — sovereign wealth funds that oversee assets worth more than $1 trillion combined — have been on a busy investment spree beyond the Gulf region to stake a claim in whatever takes their fancy.

Data published last month by GlobalSWF, a platform tracking sovereign wealth fund activity, found that over half the $96 billion invested by state-backed funds globally in the first six months of 2024 came from Middle Eastern funds.

A particular focus for these funds built on the back of petrodollars has been to build ownership and influence in the tech sector. Mandates to diversify their economies at home through initiatives like Vision 2030 have created incentives to bet on those with an eye to the future.

In 2017, both funds made a collective commitment of $60 billion to SoftBank's then-newly minted Vision Fund, the world's biggest venture capital vehicle that would go on to transform the world of startup investing with bets on companies like TikTok owner ByteDance and Uber.

More recently, PIF and Mubadala have been busy making tech bets of their own, pouring billions of dollars into everything from electric vehicle companies to fintech startups seeking to shake up the world of finance.

Not all of them seem to be going to plan.

Lucid action

Saudi Arabia's Crown Prince Mohammed bin Salman chairs the Public Investment Fund.

FETHI BELAID

Over the past week, PIF and Mubadala have been busy figuring out what to do when their unbridled ambitions for tech companies face reality.

On Monday, Saudi Arabia's sovereign wealth fund pulled up its money truck for Lucid, the California-based Tesla rival it has 60% ownership of, with a fresh $1.5 billion commitment aimed at helping the company through a tough period.

According to Lucid, the commitment will see PIF affiliate company Ayar purchase $750 million in convertible preferred stock and provide a $750 million loan facility at a critical moment for the firm.

In March, CEO Peter Rawlinson told the Financial Times that although Lucid has sufficient funds to see it through to next year, it was spending about $1 billion a quarter in its mission to deliver luxury EVs to the market.

The heavy spending needed to build a strong EV brand hasn't been helped by a global slowdown in demand for clean energy vehicles, as inflation and high interest rates prompt consumers to spend more cautiously.

The Lucid Air, marketed as "a superior long-range electric sedan" that can hit 60 miles an hour in 1.89 seconds, starts at $69,900.

Lucid has struggled to grain traction for its EVs.

John Keeble/Getty Images

Although Lucid now has a new lease of life from the Saudis, Rawlinson acknowledged back in March that it was dangerous to expect the state's "bottomless wealth" would be a constant fallback. How long the Saudis want to stick around remains to be seen.

PIF has also been pushed to offer a lifeline to Magic Leap.

UK filings released for the augmented reality company on August 2 said that the Saudi fund, which has been majority owner since 2022, put $750 million into the struggling business from the start of last year through to July 2024.

The filings also said that "based on the most recent forecasts," the company would need to raise funds again before "late August 2024 and again in January 2025 and June 2025" to meet financial obligations.

Rescue mode

Will the Saudis be the ones to plug that financing hole? If it plans on sticking with Magic Leap in the long term, it'll be aware of just how much support the firm will need, as it's spent 14 years struggling to get its vision for immersive technology off the ground.

Abu Dhabi's Mubadala appears to have been in rescue mode this past week too.

Reports from the Financial Times and Bloomberg have shone a light on efforts being made by the sovereign wealth fund to boost returns in European startups it has invested billions of dollars in.

Several of these nascent tech companies, such as insurance firm WeFox, have been bruised by shifting sentiment in the markets in recent years. The lofty valuations they secured when interest rates remained low have taken a hit, triggering moves such as restructurings and leadership changes, the reports said.

It's worth noting that both Mubadala and the PIF remain in strong positions overall. In May, Mubadala announced that its assets under management in 2023 had risen 9.4% from the year before. In July, PIF said it swung to a profit last year after making a loss in 2022.

Still, both funds will be aware that they have embarked on a globe-trotting mission to establish a reputation for themselves as sophisticated investors capable of making shrewd moves.

Seeing their tech bets fall apart will be a tough reality to face.

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It's not just real estate and spending — another pillar of China's economy looks like it's heading for trouble, too

China's exports grew 7% in July, below the expected 9.7%, while import growth reached 8.6%, surpassing expectations.

Costfoto/Getty Images

• China's July exports grew 7%, slower than expected, while import growth outperformed expectations.
• China is facing other economic woes, including weaker consumer spending and a real-estate slump.
• Businesses eyeing a Trump presidency could explain a surge in US imports, wrote Goldman analysts.

In addition to battling a slowing economy, China is now feeling the sting of slowing global demand for its goods.

The country's July exports grew 7% from the same period last year, falling short of an expected 9.7% increase and its slowest expansion pace in three months, Reuters reported. The figures for July also fell below China's explosive 8.6% export growth in June, which was the fastest in 15 months.

Meanwhile, China's imports in July surged 7.2% year-over-year, significantly higher than the expected 3.2%. Imports from the US increased 24% from last year, CNBC reported.

The slowdown in China's exports comes amid sluggish domestic demand and slower-than-expected economic growth, despite consumers' higher disposable incomes.

In the first quarter of 2024, China's economy showed signs of slowing when it grew by 4.7% year-over-year, falling short of the 5.1% expected. The slowdown was driven by weaker consumer demand and declining retail sales from a more frugal spending attitude, BI reported in July.

China's growth numbers were also dragged down by its real-estate crisis, which saw home sale prices fall by 31% across cities in March.

While China's net exports reached a record $99 billion in June, Nomura economists forecast that "China's economy will be unable to sustain a strong recovery through depending only on exports," they wrote in a note.

The decline in export numbers from June to July might signal slowing external demand for Chinese goods, Xing Zhaopeng, senior China strategist at Australia & New Zealand Banking Group, told Bloomberg. This exacerbates China's growing list of economic concerns, such as geopolitical headwinds and a declining birth rate.

The surges in June's exports and July's US imports could also be attributed to "possible rush shipments ahead of potential tariff increases if former US President Trump were to be re-elected," Goldman Sachs wrote in a Tuesday note.

The spike in July's import numbers is a bright spot for China, as it could suggest signs of revival for China's faltering domestic demand.

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