Chris Blumas

No. When you get a disruption of this magnitude, it has longer-term implications that are difficult to fix with just some statements. 

If you look at the Fed's mandate and at what the new chairman echoed yesterday, they've had a 5-year problem with inflation. Their target goal is 2%, and they've exceeded that for longer than 5 years. Yesterday saw a very hawkish tone, and a willingness to take a fresh look at some new data sources.

As there's more onshoring, and if the trade balance were to rightsize more, there's less demand for US treasuries. With less demand comes upward pressure on rates. So inflation plus trying to rightsize the trade deficit are two factors that likely push interest rates up.

Yes. If you look at the largest foreign buyers of US treasuries, and if the US is to have a smaller trade deficit, there's less demand for US treasuries. The trade deficit and the demand for treasuries are tied together.

There is a workaround for the US government if they decide they want to increase their balance sheet, and the Fed alluded to that via one of its working groups. Japan's been doing this for more than 25 years. In the past Warsh has indicated he's not a fan of growing the balance sheet (and that may change). But it would facilitate downward pressure on interest rates.

Massive user base, 40% of the world uses its platforms. Market sentiment towards them has been negative for quite a while. Relative to growth outlook, attractively valued at 17x PE, with a very healthy free cashflow yield (north of 3%). As they monetize premium subscriber features, even a small success rate would have a massive impact on revenue and profitability. Tremendous value, one to consider.

Unique company. Tends to be very cyclical, but its counter-cyclical framework gives it a huge edge. Amazing business that gushes cash. Loves it. Robust dividend. As balance sheet comes down, will allocate more capital to share buybacks, and that will be accretive to EPS. 

If you own, sit tight and let it work. If coming in fresh, wait for a bigger pullback.

Wonderful businesses, very well run. But valuations are a bit rich right now.

Trading at 17x PE, whereas longer-term multiple is around 12x. Outlook for earnings growth is still very robust, but potential for re-rating downwards on the multiple. 

Trim a bit, just to buy something that's a bit more undervalued. If coming in fresh, wait for a more attractive entry point.

His preference is MSFT, and he'd buy today. Valuation is ~20x PE -- very fair valuation for business with good outlook for earnings growth for next 3-5 years. A bit more value than AMZN right now. Business model supports a better compounding over the long run, and generates significantly more FCF. Late to the AI race, and that's the reason for the selloff.

No issues with AMZN. Very well run, targeting new markets. You can't own all the tech companies, so you have to pick your spots.

His preference is MSFT, and he'd buy today. Valuation is ~20x PE -- very fair valuation for business with good outlook for earnings growth for next 3-5 years. A bit more value than AMZN right now. Business model supports a better compounding over the long run, and generates significantly more FCF. Late to the AI race, and that's the reason for the selloff.

No issues with AMZN. Very well run, targeting new markets. You can't own all the tech companies, so you have to pick your spots.

Exceptional job evolving and becoming more competitive with the Canadian banks, but hold off. He always struggles with the smaller, specialty finance companies. Less diversification compared to the bigger players. If one segment has issues, it affects the whole enterprise.

US banks offer more value today than Canadian ones. Potential for corporate tax rates to come down is why US banks have had such strong performance. More deregulation helps, too. Still a bit rich relative to growth.

See his Top Picks, for an idea in the private equity space.

Hasn't owned, as it's always been too cyclical. Safer way to play mining. Ran so fast, so quickly. PE multiple north of 30x, so a lot of positive things are already baked in. FCF yield is very small. Growth profile quite robust, but if that were to get hit then valuation would come off.

Has come off on fears about AI. Strong growth profile, yet valuation ~15-17x PE. Generates very strong FCF. Likes it a lot. A Buy today.

Has come off on fears about AI. Strong growth profile. Likes it a lot. A Buy today.

He's held on, added, and would buy today. Fears about AI have really hit. Very robust underlying operating performance. Quite a strong argument that it will benefit from AI over the long term. Really attractive valuation right now. AMZN launching supply chain services is not a threat, as DSG is already integrated into the AMZN system.