Asks about the thesis for diversification away from large-cap tech and why it's important heading into 2026.
Contessa
Paul Christopher
Acknowledges year-end position adjustments but looks past them. Sees AI CapEx as a reliable growth trend for next year but warns Mag-7 stocks can get extended. Advocates playing the trend through safer, ancillary ways like data centers (positioned in industrials/utilities with lower P/Es) and emerging markets (South Korea, Taiwan).
Asks if insurers, given their focus on data centers, are a play on AI.
Contessa
Paul Christopher
Favors the entire financial sector, including banks, especially with a steepening yield curve.
Asks for 2026 outlook on metals (gold, silver) and whether to take profits.
Contessa
Paul Christopher
Attributes recent metal price softness to year-end profit-taking and speculative rotation into oil. Believes the precious metals trend remains intact but advises buying on pullbacks, not chasing. Cites buying gold at $3800-$3900/oz as an example.
Asks about consumer discretionary/staples and consumer strength for next year.
Contessa
Paul Christopher
Describes a bifurcated, K-shaped consumer. Lower-income households are struggling, while wealthier ones continue spending. Tariffs add uncertainty. Prefers to move money from consumer sectors to industrials, utilities, and financials.
Asks if tax refunds change the consumer outlook.
Contessa
Paul Christopher
Tax refunds will help restimulate softening spending and keep it alive but won't be a major growth stimulus or make tech sectors look less attractive.
Asks for a year-end 2025 S&P 500 target and expectations.
Contessa
Paul Christopher
Targets S&P 500 range of 7400-7600, driven by earnings, with a $300 EPS target. Expects a year of broadening growth across sectors, driven more by earnings than by multiple expansion.