A cybersecurity stock to play the AI trend, and why U.S. exceptionalism in markets isn't over

CNBC

04-06-2025

(This is a wrap-up of the key money moving discussions on CNBC's "Worldwide Exchange" exclusive for PRO subscribers. Worldwide Exchange airs at 5 a.m. ET each day.) Investors on Wednesday are looking at cybersecurity stocks as a way to play the next phase of the artificial intelligence trade. Plus, one investors breaks down his bond market forecast as hopes for Federal Reserve rate cuts in 2025 grow. Worldwide Exchange Pick: Cloudflare Sevasti Balafas, CEO Goalvest Advisory sees Cloudflare as a broader way to play the AI an tech trade. "A big part of the reason that we like them is that 80% of their revenue is stable subscriptions based and secure," said Balafas. "They are a broad platform it's not just cybersecurity that they are focusing on, they make our websites faster and more secure but it's not just security. They have a broader platform that we like. " Cloudflare shares are more than 60% higher year to date. The stock also makes up 5% of the Amplify Cybersecurity ETF (HACK) and 4% of the First Trust Nasdaq Cybersecurity ETF (CIBR) . Both funds are trading near all-time highs this week. Fed impact on the bond market With fed funds futures pricing in as many as two rate cuts in 2025, Ben Emons of FedWatch Advisors is seeing dovish signs. "The Fed has room, but the timing seems to be challenged because of the uncertainty ... I think the Fed is in a position to cut and will likely follow through," said Emons. But Emons believes rates will also stimulate the economy enough to significantly boost yields. "Yields should go higher from here as opposed to lower at least at the initial phase. I think we are going to test close to 5% (yield) on the 10-year simply because the economy is picking up," he said. Global market view from the SuperReturn Conference Julian Salisbury, co-CIO of Sixth Street Capital, shared his view of the global markets and U.S. exceptionalism. "I don't think the U.S. exceptionalism story is done; it's still the best investible market in the world," said Salisbury. "A lot of people are starting to say I have kind of gotten overweight just given the outperformance of my U.S. assets over the last five-to-10 years and maybe there is a chance to rebalance."