BUY
He has April $40 calls. It bottomed during this Halftime show.
food services
COMMENT
Markets and rising rates. He's not tempted to lighten up on stocks. You have to pick your spots, as we're in this reflationary environment. Speed of the move higher in rates spooked some folks, as they weren't positioned correctly. What works with falling rates is different from rising rates. Any time you have a move that happens quickly, and the Fed became quite hawkish, it causes people to move quickly and create some uncertainty. People are figuring out where they need to be. If we thought the rate increases were going to cut off economic growth, then the things that are leading the rally would not be. The things that are highly economically sensitive are leading. If the rate rise slows, perhaps some things will find a footing, and you're seeing this with large cap tech. But they won't become leadership again anytime soon.
Unknown
COMMENT
Glory days for tech over for now? Yes, on a relative basis. Commodities have been leading the S&P for the last year. More likely to have cyclical, relative advances versus the market. The secular, long-term move is that we get outperformance from banks, materials, and industrials, because pricing is firm and margins are going higher. Huge dichotomy in earnings and revenue from those groups versus the rest of the market.
Unknown
COMMENT
Inflation affecting corporate profits? In some sectors it is, but not in others. Input costs can be added to the price for customers, especially for goods that get used up and replaced such as groceries, semiconductors, or metal producers. Those industries seem pretty well insulated at this point. Some of it is companies wanting to fatten their margins. In energy and materials, margins are expanding dramatically. Expects many S&P earnings to be better than forecast. This "dance of rotation" will continue for quite some time.
Unknown
BUY
As an income stock? Upstream commodity producers are likely to benefit from inflation and the commodity super-cycle. Prices and volumes are strong. Note that the dividend moves around. A really good one to insulate you from inflation.
Financial Services
BUY
Reflationary theme will come in steps, and this is a good company to ride that theme with. Transports are recovering very quickly since the January correction. Executing very well. Participating in the rally.
Transportation
HOLD
A defensive dividend player. It will do fine. Slow dividend grower. Growing earnings at 5-6%. Not most inflation-protected, but a workhorse. You also need significant dividend growth of 10-14% a year in your portfolio. A volatility dampener. Look for dividend growers, as that's the theme that will benefit you the most in a rising rate environment. Good yield of 5.5%.
telephone utilities