Asks for thoughts on the muted market reaction to inflation data and yields being rangebound.
speaker1
Eddie Gabor
The muted reaction is a sign of strength. The worst inflation is in the rearview mirror. Setup favors economically sensitive areas as inflation trends down and economy surprises upside.
Asks what data points give confidence in growth surprising to the upside.
speaker1
Eddie Gabor
Energy prices down are a tailwind for consumer and small caps. Expect companies in housing/small caps to beat low earnings bars, while tech faces high bars.
Asks what the market is underestimating in housing and how administration policies play in.
speaker1
Eddie Gabor
Housing off to a big start due to administration commitment. $200B MBS purchase will lower mortgage rates. Consumer confidence from wage growth and lower inflation will support housing.
Asks why underweight tech—valuation, earnings risk, or broader rotation?
speaker1
Eddie Gabor
Rotation will continue. Tech bar is too high; all good news priced in. Mag 7 hasn't done much while other areas came to life. Expect better buying point in tech later in 2026.
Asks about financials space and takeaways from JP Morgan report.
speaker1
Eddie Gabor
Bullish on financials. Current weakness from Trump's 10% credit card cap proposal is a buying opportunity as legislation likely won't pass/stick.
Asks if still bullish on small caps given Fed developments (Powell investigation, new head).
speaker1
Eddie Gabor
Very bullish on small caps. They benefit most from dovish Fed, QE, accelerating growth, and downward-trending inflation. IWM shows strong performance with buyers on dips.
Asks what investors should look for to know when the expected major correction is starting.
speaker1
Eddie Gabor
Correction will start in tech space in late March/April as AI trade gets tired. Will be healthy for bull market longevity. Plan to shift out of tech, stay in strong areas, then rotate back later.