Today, Bruce Murray commented about whether LNR-T, BMW-GR, POW-T, NFLX-Q, DIS-N, AC-T, NKE-N, ATZ-T, TOU-T, NGT-T, ARM-Q, ATD-T, FRU-T, MDI-T, QCOM-Q, TMO-N, NTR-T, ALA-T, ET-T, NVDA-Q, AMZN-Q, SHOP-T, MFC-T, SLF-T, QCOM-Q, AVGO-Q, DELL-N, MU-Q, BBD.B-T, ENB-T, CPX-T, NPI-T are stocks to buy or sell.
We've seen these events in the past where, out of nowhere, the ceiling falls in. The worst one was the crash of 1987. For this one, everyone's made a lot of money, hedge funds are loaded with debt, Japan raising interest rates scared the carry trade. All that set off a quick, short-term panic. Market traders always love a little bit of fear and they can scare people into selling them stocks at a good price.
Underlying economy is slowing, but he doesn't think we'll have a recession. Especially in the US. Canadian situation could be different because of our 5-year mortgages, coming up for renewal at higher rates.
Interest rate cuts should stimulate the economy. Starting to see demand slowing for industrials. As inflation comes down goods will be priced lower, so marginal cost per unit will be lower for producers.
We need them. We could have a repeat of the Roaring Twenties, a century later, just as everything comes together. Especially with the productivity that AI's going to introduce across the entire system. By the end of the decade, you could be getting an Uber without a driver, that's deflationary.
He remains bullish. Parts of the market reflect bullishness, parts don't. His Top Picks today reflect plays on interest rates coming down, which should help PE's rise.