The Market is on Verge of once in a Generation type move‼️
Summary
Jeremy describes a 'fascinating' and 'insane' market environment where the S&P 500 and NASDAQ are reaching record levels solely because of a few mega-cap tech stocks, while 40% of the Russell 3000 is down more than 30%. He believes that the 'AI trade' is currently bailing out the broader market, masking the fact that SAS, consumer-related, and small-cap stocks are 'dead in the water.' Jeremy's thesis is built on the expectation of a major market rotation. He predicts that when the AI trade eventually slows or erodes, capital will flow back into 'real economy' companies that show consistent growth regardless of the economic environment.
Jeremy is putting his capital to work by avoiding the 'hot' semiconductor plays and instead focusing on stocks with 4x to 10x long-term potential. He dismisses Wall Street's fears regarding Middle East tensions and rising oil prices, suggesting that the US economy is resilient enough to handle minor fluctuations in gas prices without the Federal Reserve needing to hike rates aggressively. His outlook remains bullish on individual stock picking, specifically targeting companies with low forward P/E ratios that he believes are currently 'free money' for long-term investors.
Mentioned Stocks
Reasoning: Jeremy made this his biggest buy of the day with 500 shares. He praises their business model and their ability to hit growth numbers regardless of gas prices or the broader economy.
Reasoning: He refers to ELF as 'free money' with a long-term horizon, noting that despite the stock 'falling off the shelf' recently, the EPS opportunity is huge and the valuation is very attractive in the mid-teens.
Reasoning: Jeremy bought 777 shares, stating the stock is 'way too cheap' for a company that he believes will become a financial giant over the next 5 to 10 years.
Reasoning: Jeremy considers a forward P/E of 12 for Salesforce to be 'insane' and 'ridiculous' for a company of its quality, viewing it as a major opportunity that the market currently ignores.
Reasoning: Jeremy states that American Express is 'always a buy' and that any dip is a gift, highlighting its quality and business model which is insulated from AI disruption.
Reasoning: Although the forward P/E of 89 seems high by normal standards, Jeremy argues that Palantir's growth rates are so 'ridiculous' that the stock is actually an opportunity now.