00:00 Speaker a
Is this the end of this FOMO transaction or a pause?
00:03 Speaker b
No, it's definitely not. So I think there's a lot going on right now. Well, there's a lot of focus on trying to correlate the Fed, interest rates and how people react to stocks. I think this is just one of those stories that really runs far and really fast.
00:23 Speaker b
So pause is healthy, but I think it's difficult to bet momentum on the momentum right now.
00:34 Speaker b
Do you think some of these companies are probably outweighing themselves? yes. Well, as you know, if you look at the ratings of some companies like Nvidia, they currently trade revenues at under 30x. So you know, when you see what they are doing and how they are doing,
00:54 Speaker b
It's not surprising that stocks are rising as they are. What you want to be aware of is that it is an incredible name. It's difficult because I eliminate the margin of error when there is an rating that it is growing.
01:10 Speaker b
That doesn't mean that stocks will never go down. That means that if income comes out and it's all kinds of disappointment, the stock will be punished fairly aggressively. Well, that's what you want to see the ratings. I don't think it's going to become the industry as a whole, you're not going to see it roll over. I think all you're trying to see is the names that you might miss.
01:31 Speaker b
And, as you know, this is because we are still in such an era where we are trying to figure out who the winners and losers will be, very early on. You know, we're probably three innings of this. That's why there are runways with long ups and downs.
01:46 Speaker a
Yeah. So, with all of that in mind, do you want to be defensive on the other side? Have all the things, the world's nvidias, but a bit defensive just in case?
01:57 Speaker b
absolutely. So, um, we actually do what we call barbell strategy, right? So you know, we're still making that bet. Well, that bet is probably a more defensive leaning of AI bets. But elsewhere, we have more defenses. We pay more attention to the evaluation. We are looking for those stocks that pay some kind of higher dividends you know
02:15 Speaker b
Offsets seem to be escalating because the number of things that could be wrong is increasing. Well, there are still many geopolitical things that we don't understand. You obviously have rhetoric from Washington, the Fed's chair changes. So there are a lot of things that could change over the next six or twelve months.
02:37 Speaker a
Gotcha. What does the defender of the equation look like?
02:41 Speaker b
Yes, so, you know, with technology, it's very boring, Microsoft, Google. Well, we're either away from the apple or at least waiting for it. But elsewhere, we look at health care.
02:53 Speaker b
Lily is our favorite name. Well, you know, there's a lot going on in the healthcare field. There are a few shifts, but as you know, we still like the different names of weight loss stories. So it's still heavy, but like I said, it's still a defensive play. And you know, when you look at the consumer side, you um, like I said, that's a more boring name. It's your Pepsi, your coke, um, um, gambling. We now think that's where you want to do like I said, barbell, uh, hedge the rest of your portfolio.
03:22 Speaker b
Because of that dividend, it means something. If inventory is declining, it can be reinvested as the UH market could turn over. So, like I said, it's just looking at the lower beta versions of them, you know, the lower volatility name.
