Today, Larry Berman CFA, CMT, CTA and Jim Cramer - Mad Money commented about whether HD-N, AAPL-Q, MOD-N, AGCO-N, ANF-N, CDNS-Q, HIMS-N, SFM-Q, PLTR-Q, XPO-N, EPAM-N, AKAM-Q, CELH-Q, FDX-N, PLTR-Q, NVDA-Q, ENB-T, ENB-T, TEI-N, ZWB-T, HMAX-T, ZPAY-T, SHY-Q, SHV-Q, BIL-N are stocks to buy or sell.
This week, Nvidia's earnings will pull a lot of investor attention, but last week Microsoft demonstrated a significant shift in their thinking about their investment in AI. Those two were the cause of last Friday's reversal--will Nvidia confirm MSFT's caution over AI, partially due to DeepSeek? Then, you have volatility about Trump's tariffs and chaos. Any news that questions the status quo of a market priced for perfection will create a lot of volatility. The Mag 7 no longer leads the market. Also, the market has already priced in the chance of only one US Fed cut this year.
He uses it a lot. It writes puts on stocks to buy lower and sells calls. It pays a 6% yield. If the market slides, this will fall at half the rate of the market, and if the market rallies, this will rise at half the rate, but yet get tax-efficient income off US stocks. But this is not immune to market volatility.
Everyone knows that the US budget is on an unsustainable path. No secret. Enter DOGE and Elon Musk firing federal employees. Total US federal debt to GDP is at an all-time high and will worsen. Trump's policies are trying to fix this after many years of ineptitude in Washington. Tariffs are intended to raise revenues and bring more jobs to America, but tariffs are highly inflationary. Also, create a sovereign wealth fund by taking social security and investing it better, and revaluing gold: that idea has been floated, which he thinks is good. DOGE will get rid of some debt and lose some baggage. But issuing a zero coupon 100-year bond is impossible, because you can't force anybody into buying this debt. He doesn't love Trump's style, he's starting to get things down, but that will be disruptive, volatile to markets. Also, he's not sure that Trump has a complete solution to reducing the debt, because his policies will be inflationary (which means higher interest payments). At some point, market will care about this volatility.