“I've reduced my exposure to the technology sector. The index weight is 37%. I'm at 25... I think we've reached a point where the rate of change of capital spending growth is likely to slow.”
Rising real rates threaten to trigger a sudden 10% drop in the tech sector, prompting a massive cut in exposure down to just 25% of the portfolio.
“Walmart's PE, for example, it's really an expensive stock for a company that I just, you know, margins are going to be under pressure. They're not growing rapidly... why are you paying 30 times earnin”
Walmart's massive 40x earnings multiple is completely unjustified as new tariffs crush consumer staples profit margins to their lowest levels in 30 years.
“I have very low weights in right now because of those headwinds I described before the pressure on profit margins and the K-shaped economy... profit margins are under a lot of pressure because of tari”
Tariffs and energy shocks crushed consumer staples profit margins to 30-year lows, making the sector a prime short target as lower-income demand stalls.
“I'm overweight industrials... I'm overweight the rest of the capital investment story, the idea that we're going to have a manufacturing renaissance.”
A historic $774 billion capital expenditure cycle is physically rebuilding American manufacturing and handing industrial stocks a massive growth runway.
“I'm overweight... financials because of what I described earlier with Wars' plan, the deregulation of the banking system, the steepening of the yield curve... The regional banks have done really well ”
The government plans to slash short-term interest rates to 3% and deregulate the banking sector, unlocking massive profits for struggling regional banks.
“Google, Meta, Microsoft, and Amazon since they all reported curiously on the same day back April 29th and their stock prices just fell throughout the course of the quarter after raising capital spendi”
Alphabet is burning cash to fund AI, hitting a dangerous 90% capex-to-cash-flow ratio that historically signals a peak and is already triggering a selloff.
“Google, Meta, Microsoft, and Amazon since they all reported curiously on the same day back April 29th and their stock prices just fell throughout the course of the quarter after raising capital spendi”
Meta is burning 90% of its cash flow on capital spending, hitting a historic ceiling that chokes future growth and drags down the stock.
“Google, Meta, Microsoft, and Amazon since they all reported curiously on the same day back April 29th and their stock prices just fell throughout the course of the quarter after raising capital spendi”
Big tech just hit a dangerous 90% capex-to-cash-flow ratio, forcing Microsoft to throttle its AI spending growth and capping its near-term upside.
“Google, Meta, Microsoft, and Amazon since they all reported curiously on the same day back April 29th and their stock prices just fell throughout the course of the quarter after raising capital spendi”
Hyperscalers just slammed into a 90% capex-to-cash-flow ceiling, forcing Amazon to throttle its investment growth and dragging down its stock price.