From Assets to Alpha: David Kostin on US Equities

Bullish:

• $HC - Healthcare sector is statistically the cheapest it has been in thirty years on a relative basis, presenting a significant value opportunity

  • “healthcare statistically cheapest in thirty years on a relative basis”

    David·9:18
• $AI-REV - Companies that are using AI to drive revenue growth rather than just cost cutting will be rewarded by fund managers in their share prices

  • “a relatively few number of companies have actually focused on really concrete examples of how they're using AI to drive their revenue growth. And I think that is what fund managers will embrace and will be rewarded in those share prices.”

    David·10:56
• $RETAIL - Consumer retail sector presents opportunity based on middle-income stability and growth, with additional benefits from tax reform kicking in next year

  • “the Goldman Sachs economics team is looking at the sort of middle income component of the economy, that there is actually some stability and some growth. There'll be benefits next year from the tax reform that will kick in.”

    David·9:15

Bearish:

• $SPX - S&P 500 expected to deliver below-average returns over the next decade, likely in the lower end of the 3-10% distribution range

  • “it is my belief that we're probably going to be in the lower end of that distribution”

    David·12:36
• $AI-PVT - Private AI markets are experiencing unsustainable capital availability and pricing, which could be considered a bubble

  • “I believe in the private markets, the availability of capital and the price is probably unsustainable, which one could take as a synonym for a bubble.”

    David·5:31