“the bad news is probably fairly reflected here. I think you should probably buy these stocks... If you look at the multiple, the forward multiple on that basket of seven names, it's well below its fiv”
A brutal 30 percent correction just knocked the speculative froth out of tech, leaving the Nasdaq 100 trading at a deeply discounted 23.8 forward multiple.
“I think the better part of valor is to use pullbacks and weakness to your advantage, put money to work there. Specifically, small cap in the US and EM equities.”
Global earnings power is finally spreading beyond the Mag 7, so buy emerging market equities to capture their projected 50-55% earnings growth in 2026.
“Specifically, small cap in the US and EM equities... That will probably continue. So, in the US, small and mid have the pole position with large value.”
Earnings power is breaking out of the Mag 7 and flooding into smaller companies, making US small caps a buy as they target 43% earnings growth in 2026.
“...or maybe in public real estate, right? Which Um you know, one's defensive, one is really rate sensitive more than anything else.”
Dump public real estate because the sector is dead money chained to borrowing costs, especially as 30-year mortgage rates spike to 6.51%.
“I don't think there's much much to get excited about in the consumer staple space or maybe in public real estate, right? Which Um you know, one's defensive...”
Investors abandon defensive consumer staples as the broader market expands, leaving the sector severely trailing the S&P 500's 17.3% gain.
“we're bullish Japan as a sidebar, have been. We like the changes there. We like the emphasis on on uh companies being more uh friendly to stakeholders and shareholders and more growth oriented than th”
Tokyo is forcing companies to unlock value and repatriate cash, triggering a record ¥14.2 trillion in share buybacks that directly enrich equity holders.