Mum’s The Word: Kathryn Rooney Vera on Fed’s Second Meeting under Kevin Warsh, Plus Earnings Breakdown (Live Replay) – Monetary Matters with Jack Farley

Mum’s The Word: Kathryn Rooney Vera on Fed’s Second Meeting under Kevin Warsh, Plus Earnings Breakdown (Live Replay) – Monetary Matters with Jack Farley — Transcript

Market views

Bullish

GLD— Gold recommended as hedge against loss of Fed policy credibility. Has been a strong performer and continues to be recommended on retracements.
SEMICONDUCTORS— Despite recent pullback, semiconductors viewed as attractive buy if AI thesis is real. Presenter going on record recommending purchase at current levels.
AAPL— Apple viewed as good AI beneficiary with way lower risk despite being at all-time highs. Not spending as heavily on CapEx but still positioned to benefit.
LRCX— Lam Research beat expectations significantly and guidance expectations appear too low for next 24 months. Stock up 7% after hours on strong results.
MSFT— Microsoft beat earnings expectations significantly with strong Azure growth of 43% YoY and massive CapEx spending of $41B showing commitment to AI infrastructure.
CRM— Salesforce viewed as very cheap if AI thesis proves false. Software companies generally cheap on non-AI scenario.
NOW— ServiceNow viewed as very cheap if AI thesis proves false. Software companies generally cheap on non-AI scenario.

Bearish

META— Meta reported disastrous quarter with costs up 55% while revenue only up 28%, resulting in 8% decline in operating income. Weak guidance and anemic CapEx raise signal potential peak in spending.
WTI— Oil expected to drop once Iran conflict ceases. Energy stocks were top pick but now recommending profit realization through year end.
TLT— Long-end treasury bonds sold off sharply as Fed credibility questioned. 30-year yields rising as market doubts Fed's inflation-fighting commitment with rates on hold.

Not investment advice.

Mentioned

Market views