Today, The Weekly Buzzing Stocks by Billy Kawasaki and Stan Wong commented about whether MA-N, STZ-N, AMZN-Q, PFE-N, QQQ-Q, XQQ-T, MS-N, MCK-N, CAH-N, MRK-N, COST-Q, DPZ-N, GOOG-Q, SBUX-Q, ASML-Q, GOOG-Q, ZWB-T, SHOP-T, VTI-N, VUN-T, INDA-US, XID-T, RCL-N, PANW-N, LLL-T, TRP-T, BTI-N, MAIN-N, NVDA-Q are stocks to buy or sell.
The word of the last several months has been resilience. Still elevated inflation and relatively higher interest rates, yet global markets are still up 11% YTD. Technology and the S&P 500 have done even better than that.
We have to talk about the strength of the US economy. The consumer continues to be very strong, and corporate earnings continue to be very solid. Unemployment rate is near decade lows. He's very optimistic about the rest of the year. Based on the magnitude and length of this bull market, 20 months or so, we're probably in the 4th-6th inning at this point.
We're probably going to see 1-2 cuts by the Fed by the end of the year, depending on inflation numbers. Going back a month, predictions were for no rate cuts; now we're looking at potentially 2 cuts based on futures markets. Have to remember that there's still a lot of money sitting in money market assets, about $6T USD.
Once rates start coming down, investors might be encouraged to move money into better-performing areas such as risk assets like equities.
Pullbacks and corrections are par for the course. It's the price of admission to the stock market. Looking back to 1950 for the S&P 500, there are three 5% pullbacks on average in any given year, and one 10% correction. Look for those to add to good-quality holdings. Always pay attention to total asset mix and allocation in your portfolio.
It's almost a given that choppiness will come, and you want to take advantage of those times.
Not all-in on AI. Go back to 2000, when we knew that the internet would be a big part of the future. But lo and behold, not every internet company survived. Tech market was down 82-83% for 2.5 years. AI is a very important part of our future and of investing today, but be cautious about buying everything in that space and only in that space.
His tilt is still secular, long-term growth companies. Very little competition, duopolies or oligopolies, such as COST or ASML. Really command the market and have pricing power, such as MA or Visa.
Chart's improved, 200-day MA starting to move a bit higher. Price moved above 200-day late last year. Those are good signs technically. Great dividend, about 7.3%, fairly safe and in fact sees 4% growth. Spinning off liquid pipelines, should unlock shareholder value. Lots of exposure to nat gas, and those prices seem to be bottoming. Good for yield and steady growth.
He owns ENB instead.
Lots of competition. He bought it as it came down to the 200-day MA. Still trading around the 200-day, but that continues to move higher. Long term, no doubt that cybersecurity is important. One of the better secular growth spaces.
Leads the area. Not necessarily inexpensive, but an important place to be because of its leadership and the industry it's in. Outperformed the S&P since early 2020. Has come off this year, but trendline is still moving higher.