Don't Call It a Comeback

Bullish:

• $SMALLCAPS - Ram expects small cap stocks to outperform due to declining rates, improving US consumer confidence, lower taxes, and technical factors like short covering.

  • “Welcome to small cap summer. Welcome to small cap summer. I think that's going to play out with declining rates and improving US consumer confidence, lower taxes coming, animal spirits, strengthening, small cap stocks being the default short of hedge funds that now need to cover their gross long is already maxed out.”

    Ram·32:45
• $NCLH - Ram is bullish on Norwegian Cruise Lines due to its high return on equity and rapid book value growth.

  • “Norwegian cruise lines. This is a business that's got an ROE of 95 by the way, or turn on equity of 95%. So they're compounding book value quickly”

    Ram·35:15
• $CONSDISC - Ram believes consumer discretionary stocks are undervalued due to improving consumer confidence and previous recession pricing.

  • “Consumer confidence data came out. It's higher than people thought. So people are coming out of their shell. And that's why I think names in the consumer discretionary sector are especially interesting because not too long ago, they were priced in for recession.”

    Ram·29:45
• $FINANCIALS - Ram is bullish on financial stocks, particularly banks, citing attractive valuations, potential deregulation, capital relief, and upcoming tax cuts.

  • “Do you have many bank stocks that are below where they were just prior to the November election last year? They're cheaper than they've got more earnings And they're not at all time highs despite you got deregulation coming, capital relief, and you've got tax cuts.”

    Ram·27:15
• $STABLES - Ram sees potential in stablecoins to transform lending and payments, impacting traditional financial systems.

  • “I shared a video a few days ago talking about how stable coins are gonna transform lending even to mainstream. People talking about the payments impact. That alone is a big impact.”

    Ram·31:15
• $BF - Ram recommends Bread Financial over SoFi, disclosing his own position in the consumer finance company.

  • “If you're in SoFi, better off buying Bread Financial. Okay. I own this name. Let's see. Bread's been doing real well. This is a consumer finance name.”

    Ram·49:45

Bearish:

• $V - Ram suggests traditional payment processors like Visa could face competition from stablecoin-based payments, potentially impacting their profit pools.

  • “Stripe is charging 2.9% per transaction plus a transaction fee. Visa is a part of that. Mastercards are part of that value chain capturing that. If you can move money with stable coins, those profit pools are at risk.”

    Ram·31:30