Latest news with #FirstTrustNasdaqCybersecurityETF
CNBC
10-07-2025
- Business
- CNBC
Finding opportunities in alternative asset managers and a bearish call on the U.S. dollar
(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 are looking for opportunities in alternative asset managers and in cybersecurity. One also issued a bearish call on the U.S. dollar due to tariffs. Alternative asset managers Ben Snider of Goldman Sachs sees opportunity in alternative asset managers. "It's a really interesting part of the market, it's a group with high growth, improving prospects and has not participated in this market rally," Snider said about names like Apollo Global , Ares Management , Blackstone and Carlyle . He added: "Post-election about six months ago, there was a lot of enthusiasm about these stocks on the view that higher asset prices and more capital markets activity like IPOs and M & A would boost these stocks. Then of course, all attention turned to tariffs, the market sold off, and these companies fell with it. What's incredible now is that thesis is coming to pass, the S & P is at a record, we are seeing more IPOs and yet these stocks are trading 20% below their prices earlier this year." Tariff impact on the dollar Elias Haddad of Brown Brothers Harriman sees bigger declines for the U.S. dollar with trade policy as a continued headwind. "The decline in the dollar here, reflects this loss of confidence in US Trade and perhaps fiscal policy,' said Haddad. "The key issue here is the US protectionist trade policies is an ongoing drag on the dollar." According to calculations from Brown Brothers Harriman, the effective U.S. tariff rate has increased to 18% in 2025 compared to 2% in 2024, something Haddad sees as bearish for the greenback. He added: "You have the ongoing trade war that threatens to accelerate the declining role of the dollar as the primary reserve currency … policies aimed at narrowing the trade deficit means you have less U.S. dollars flowing overseas and there will be less dollars flowing back into U.S. securities." The dollar is coming off its worst first half of a year in over 50 years , and has fallen more than 6% since April 2 when the President announced 'reciprocal tariffs'. The AI and cybersecurity trade Jack Hidary, CEO of Sandbox AQ, sees a growing trend of cybersecurity powered by artificial intelligence. "AI and cyber look for that to be a key trend for the second half of the year as more attacks happen and enterprises need to defend themselves," said Hidary. "The hackers are using AI companies also have to use AI to defend themselves." Cybersecurity stocks represented by the First Trust Nasdaq Cybersecurity ETF (CIBR) , Global X Cybersecurity ETF (BUG) and the Amplify Cybersecurity ETF (HACK) have outperformed the market year to date and since the April lows.
CNBC
04-06-2025
- Business
- CNBC
A cybersecurity stock to play the AI trend, and why U.S. exceptionalism in markets isn't over
(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."
