Rob Sechan, Managing Partner, New Edge Capital

A way to play the semis, trades cheaply and 62% operating margins.

It's not his thing, but there's a lot of support for gold heading into year's end, because real interest rates are declining. 2013 and 2017-2018 saw good returns for gold. It's viewed as a hedge against geopolitical risk and inflation.

They reported yesterday and expectations were great, but the report was not great. Hence, shares are weak today. It trades at 14x 2024 sales, which few companies can achieve. Tesla was one, and when they reached that, they had a 70% drawdown.

Driving the market to new highs near-term: interest rates are coming in, investors including himself are not taking gains including in the Magnificent 7. True, markets are overbought in the near-term, but he doesn't see a catalyst for a sell-off. Next year is a different story.

Enjoys solid trends in its core business, and trades at 11x PE and a 30% discount to its peers.

He's been trimming it when it gets expensive, and remains neutral. Apple is a great business, but some of their businesses are decelerrating. They have huge cash balances, though. He's long term.

How do you stay invested in this period of digestion where there's a lot of risk. There remains inflation pressure on consumers that will impact spending. Stick with companies that have healthy free cash float, moats, competitive advantage and most importantly, valuation. We're in the middle of a correction that is testing moving averages. What can earnings and valuations do? The Fed will be higher for longer.

Likes it. BABA is relatively cheap at 10x, a discount to its historic average and a 40% discount to China's tech sector, despite the political risks. They hold 50% of market share and touches 70% of the Chinese population. 

It sat out the rally this year, but continues to execute. Has owned this a long time.

The rally will depend on earnings. Doesn't know what will happen in the rest of the year, but a recession in unlikely, more likely in 2024. Valuations are high. He expects a period of choppiness, but he is invested and not negative. He's been trimming tech modestly like Apple, because the PE rose. He loves energy and healthcare.

Down 6% today, but up 4% yesterday to hit a 42-week high. They are clearly shifting to AI, a positive. They have a solid base to move from. This is a lot cheaper than Nvidia. Likes to own this. Buy it on sale. They beat EPS.

Just bought Skyworks and Alibaba. China is a great contrary play, and BABA is cheap. Skyworks is in every smart phone in the world, and they've been re-rated 50%. They boast attractive demographics and valuation. 

Just bought Skyworks and Alibaba. China is a great contrary play, and BABA is cheap. Skyworks is in every smart phone in the world, and they've been re-rated 50%. They boast attractive demographics and valuation. 

Quantitative metrics led to him selling it this week in order to buy other names.

He owns retail, but not names like LULU or Nike, but rather defensive ones like this. He sees more weakness in pooer consumers (i.e. Dollar General which plunged recently). HD benefits from the general consumer trade-down of staying in your home longer and fixing it up. The days of consumers being flush with cash are over. Done. Inflation seems to be weakening the low end of the job market.