Latest news with #KevinMahn
CNBC
14-08-2025
- Business
- CNBC
An AI 'pick-and-shovel' play and signs that the market rally is broadening
(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.) Traders looked at signs of the market rally broadening outside of the megacap tech names. Plus, a new way of playing artificial intelligence. Worldwide Exchange Pick: Aecom Kevin Mahn of Hennion & Walsh sees Aecom as a "picks and shovel" play for the AI trade. "I always follow the adage of 'follow the money' we continue to see companies announcing tens of billions of dollars of investment into AI infrastructure," Mahn said. "Who are the companies that are going to benefit from all that spending? Aecom is one of them. They are the infrastructure partners for the upcoming 2028 Olympics in Los Angeles. They also provide engineering, consulting and construction services to data centers." Aecom is outperforming the S & P 500 and Nasdaq-100 year to date. Opportunities in municipal bonds Mahn said municipal bonds are primed for a breakout after a rush of issuance ahead of the Trump tax and spending bill on concerns they would tax exempt provisions could be taken away. "Municipal bonds have struggled year to date on a price basis," Mahn said about the price action due to elevated issuance. "What we see over the remainder of the year is less issuance. Any time you have an asset class where you have less supply increasing or similar demand, prices are going to go higher." Plus if you are a high net income investor, tax free income is always attractive," Mahn added. Broadening market As the S & P 500 and Nasdaq hit fresh records again on Wednesday, there is a simultaneous broadening and a move into more volatile parts of the market by investors. This week, the Invesco S & P 500 Equal Weight ETF (RSP) is outperforming the market cap weighted S & P 500. "All the evidence of froth is clearly there," said Gina Sanchez of Chantico Global. "I think the market's broadening out is a good sign because it's been such a tiny segment of the market has been driving most of the returns all year which makes the market somewhat fragile." Sanchez added: "I see a lot of downside for the markets but the momentum is continuing, the problem with momentum and sentiment is that it can turn and shift at any moment."
Yahoo
01-08-2025
- Business
- Yahoo
3 stock picks for second half of 2025
We are more than halfway through 2025. Hennion & Walsh chief investment officer Kevin Mahn shares three stocks he likes for the second half of the year. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. Kevin, your uh, keep an eye on some key themes in the second half here. Let's run through these, my friend. Sure. We'll go through three of them, rapid fire, right? One, you talk about here, here's the first Kevin theme, the long game of artificial intelligence and besting. You call out Taiwan semi, which has that it's it's up around 20% this year. I know some on the street, they worry about tariff impact, demand being a risk this year, but walk me through how you think about that there. Taiwan Semiconductor, the largest dedicated chip foundry in the world with a 60% market share. You know who their largest client is? Nvidia. Everyone thinks Nvidia makes their own chips. They don't. Taiwan Semiconductor makes their chips. They just lifted their full year guidance by 30%, and we also know that Nvidia is looking to onshore the production of their chips into the US. Taiwan Semiconductor has a facility in Phoenix, Arizona. I've visited it. It's massive. Taiwan sector's got more room to grow. And into your point, I mean, it's customer list, it's just a who's who of tech. Uh, the other one I'd like to talk about, increased investment in defense and security. Why is that a theme? How do you want to play it? So start, we recently learned that NATO countries have committed to spend up to 5% of their GDP on defense spending over the next decade. We know that the European Union is going to spend $840 US billion US dollars over the next four years on defense spending. President Trump just included nearly $1 trillion in defense spending in the US budget. Where does that money go? Defense contractors. Here's an international play. We know international is outperforming US thus far this year, significantly. One name to play, BAE Systems, the largest defense contractor in Europe and one of the six prime contractors to the US Department of Defense. They pay a dividend about 1.7%. If you're looking to follow the money, the money's going into defense spending and BAE system is one way to play that. Would you want BAE instead of or in addition to a Lockheed Martin? In addition. In addition to. This gives you some geographical diversification. You mentioned North of Grumman. How about a company like Kratos Defense, which is building autonomous warfare so you don't have to put soldiers' lives at risk in war. So there's different ways to play where this money's going to ultimately be spent, but BAE gives you a little geographical diversification as well. Yeah. Last one I want, look to sources of power to help power your returns. Which what's the name there? How about Nisource? It's a multi-utility. It's one of the largest distributors of natural gas in our country with over 3 million customers in states such as Pennsylvania and even Virginia. Virginia which has become the capital data centers of the world. So now utilities have become a back door play into the AI revolution. And A Nisource has a dividend over 2%, nearly 3%. So you get the defensive characteristics of utility, the back door play into the AI revolution, and as the energy secretary says, natural gas is where we need to lean into right now to help power the AI revolution going forward in addition to nuclear and other alternative sources. Yes. I just you're in good company, by the way. Street agrees with you. I'm just looking at 80% of analysts covering this name say it's a buy, Kevin. Mhm. Related Videos Berkshire Hathaway earnings: 'Perfect' stock to own when 'worried' Big Tech's huge AI spending spree: A closer look post-earnings Fed Governor Adriana Kugler to resign Colgate-Palmolive, Rocket, Regeneron: Trending Tickers Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-08-2025
- Business
- Yahoo
3 best 'pockets' of 'growth opportunity' for investors right now
Hennion & Walsh chief investment officer Kevin Mahn joins Morning Brief with Julie Hyman to discuss recent market highs and why he feels that artificial intelligence (AI) stocks, the aerospace and defense sector, and municipal bonds are the best places to find growth opportunities right now. To watch more expert insights and analysis on the latest market action, check out more Morning Brief. the records that we see day after day after day, we know are being fueled at least in part by these large cap tech stocks which are so heavily weighted in the averages. Is that just going to keep on going? It's a great question. So last week we had a golden week where the market actually closed at an all new time high, all five days of the week. We've seen a tremendous bounce back in the markets from the initial onset of tariffs in early April. In fact, from day 74 of this year to the end of the second quarter, the market's up over 20%. That tells me that we're going to have to be a lot more selective jewels to find pockets of growth opportunities in the second half of the year. Some of these AI names, certainly worthy of considering. Aerospace and defense names given all the announced spending that's taking place across the globe and defense, another good place to look. And also muni bonds because that's one of the few asset classes that really haven't rebounded thus far in 2025. Now, Kevin, I know we're sort of a broken record on the tariff issue, but I got to ask about it, especially with the president saying this morning that tariffs on India are going to be 25%. Does the market care at any point? It seems to me, jewels, as though the market has now moved past the most dire consequences of these tariffs, believing that ultimately we're going to strike trade agreements similar to what we saw with the European Union and Japan, perhaps having a 15% based tariff rate as the worst case. Of course, time will tell if that proves out to be the case, but it strikes me that markets have moved past the tariff threats and are now squared focused focusly in on the Federal Reserve this afternoon, what they announced for today and all likelihood, what that means for the balance of this year. Related Videos Big Tech's huge AI spending spree: A closer look post-earnings Apple Rebound Looks Elusive as AI Woes Draw Investor Scrutiny Robots Dance, Box, and Play Piano at China's AI Summit 3 stock picks for second half of 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27-07-2025
- Business
- Yahoo
3 stock picks for second half of 2025
We are more than halfway through 2025. Hennion & Walsh chief investment officer Kevin Mahn shares three stocks he likes for the second half of the year. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. Related videos Top Stock Market Highlights of the Week: DFI Retail Group, Trump's Trade Deal with Japan and Singapore Post Kotak Mahindra Bank's Q1 profits drop more than expected on higher provisions Smart Reads of the Week: STI Surge, MAS Capital Boost, and Long-Term Growth Picks Thailand's PTTEP buys full control in offshore gas block from Chevron for $450 million Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
26-07-2025
- Business
- Yahoo
Uncertainty is 'here to stay': What that means for markets
PIMCO chief investment officer core strategies Mohit Mittal joins Market Domination with Josh Lipton and Hennion & Walsh chief investment officer Kevin Mahn to discuss President Trump's upcoming August 1 tariff deadline, the uncertainty that comes with it, and why "the balance of risk" is shifting to the downside. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Joining us now is Mohit Mittal, he's chief investment officer, core strategies at Pimco. That firm has more than two trillion dollars in assets under management. Mohit, it is great to see you on the show. Maybe start, Mohit, with what we were just talking about there: trade tensions, tariffs. We have August 1st that is circled on our calendars. As investors we're all waiting for it. I'm curious to think about how are you thinking through that deadline? As a CIO, what are you telling clients? Thanks for having me, Josh. Yes, so, I think the way we are thinking about this, even if we take a step back from that one immediate deadline, what we are observing is a broad, somewhat slowdown in the data. Add to it the incredible amount of uncertainty that is being created by these broad tariff policies. And those uncertainties are not going to go away on August 1st. Meaning that there might be some extensions, there might be some deals, but those uncertainties are here to stay. And what that means is that that uncertainty feeds into corporate sentiment. That uncertainty feeds into consumer sentiment. Which means that, you know, as we go forward towards the end of the year or next year, growth continues to slow down towards, say, 1%. And then add to it the context around earnings expectations. So when you look at the earnings expectations for this year, they are in the high single digits, same for next year. So the balance of risk in our mind, given kind of these uncertainties and in the context of expectations which are quite optimistic, the balance of risk seems to be towards kind of under-delivering relative to expectations. So is your point, and I'm just looking at the popular average here, we are, you know, agreeing across the board. Again, Mohit, is your point that you think investors are being a bit complacent here? Absolutely. I think that's kind of the view here that investors are being complacent in, say for example, kind of the equity markets, even in lower quality segments of the credit markets where valuations are near historic types. And when we contrast that to higher quality fixed income where investors can get, call it, six percent yield in a very, very high quality manner. That looks like a very attractive alternative in this kind of environment of elevated uncertainty and ongoing complacency. Kevin, bring you in here as well. Mohit's point is well taken. To the extent, Kevin, I wonder whether you get nervous when nobody else seems to be nervous. Absolutely, and I think what we need to understand is that we're pretty far along this bull market run. Through the first 73 trading days of 2025, the S&P 500 was down 10.2%, the fifth worst start in history. Now we've seen a significant move higher since day 74. How much longer can that run last? So I would anticipate some more short-term bouts of volatility ahead, whether it's due to the lack of trade agreements being announced, perhaps tariffs being more severe than when originally anticipated, or the Fed staying on pause for even longer than many are currently forecasting right now. That could all create more volatility. But I think each part of that volatility brings more investors back into the market. Mohit, what do you say to those folks who come on the show and they're, they're bulled up, they're more constructive. And honestly, Mohit, I think they basically tell me, 'Listen, Josh, just don't overthink this. The reason the market's higher is because the fundamentals look good: solid earnings, solid economic data, and a Fed that seems to want to cut later in the year.' What is your response to that? I think there's a lot of merit to that and that certainly can hold that we can continue to see, you know, equity markets do well. We continue to see credit markets do well. But I think what is also interesting is that in the last, call it, 15, 17 years, post the GFC, generally buying the dip has always worked out. And I think many factors have been behind it, but one of the factors continues to be around ongoing large fiscal deficits, as well as a strong monetary policy support through quantitative easings. Whenever there has been a big stress, you have seen both the fiscal authorities as well as monetary authorities come to the rescue. I think where we are, as we think about kind of where we are, we recognize that because of high debt to GDP for the US federal government, you have some constraints at the fiscal level in order to be able to address the next crisis with larger fiscal deficits. Same thing, you know, with the Central Bank. I think the QE would be somewhat less easier to do next time around, given the prior inflation or concerns around inflation that the prior QEs may have created. So in that context, we recognize that I think certainly you could have an environment where earnings continue to deliver and equities do well, but the balance of risk seems to have shifted to the downside. And I think the last point I would highlight also is that a lot of optimism is being built around the idea that we will realize the productivity enhancements because of all the investments in AI related chips, energy, all of that. In a scenario we don't realize those productivity enhancements, I think certainly the balance of risk again shifts a little bit to the downside. Related Videos Mortgage rates steady, Trump says no capital gains on home sales Why bitcoin could hit $300,000 next year 4 advantages give Alphabet a 'strategic position' in AI race Pharma sector outlook as Trump's drug tariff deadline looms Sign in to access your portfolio
