Strategist's two stocks to buy (and one to skip)
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I just think the market in the short term has just gotten to be a little overly complacent, starting to see some signs of excess speculation, you know, meme stocks starting to make a comeback, short squeezes. I actually just heard about a resurgence in SPACs. You know, we haven't seen those for years at this point, you know, an increase in call buying. So in my mind, you know, still market weight overall. I think positioning is more important than ever, but I do think it's a good time to look to take profits where stocks have rebounded too far too fast off those April lows. You know, April 7th on the morning filter, which is my, you know, weekly podcast, is when I'd officially moved to an overweight. So at this point, I just don't see the tailwinds to really continue to keep pushing the market that much higher here in the short term. You know, you were talking about the ease earlier, you know, when we look at the US economic growth, our economic team expects the US economy to slow sequentially, you know, for the next three quarters. Of course, we have, you know, the tariff negotiations going on. I think it's really going to be all about with China. China, of course, is not going to roll over on these negotiations. I think that's going to be hard fought. Not getting a tailwind from long-term interest rates. They're still kind of in that trading range in the mid fours. You know, inflation still moderate, but again, that's going to come up later this year as the tariffs, you know, start to hit. And for now, I think the Fed's on hold. So again, I'm not seeing those tailwinds really to get the market to continue moving up that much more. So, good time to take some profit taking, but then also, as you talked about earlier, move into some of those, you know, low valuation stocks.
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