It just Started‼️ Market Bloody Red

Jeremy Lefebvre Makes Money•Mar 5, 2026

Summary

Jeremy analyzes a massive 1,100-point drop in the Dow Jones Industrial Average, which he attributes to significant declines in heavyweights like Walmart, Caterpillar, and major healthcare companies. Despite this broader market pain, Jeremy highlights a notable divergence in SaaS stocks like Salesforce, ServiceNow, and Adobe, which are trending upward. He suggests that these tech stocks have likely bottomed out after being oversold. He expresses concern over macroeconomic headwinds, specifically the rising 10-year Treasury yield and surging commodity prices (GSG index), which could lead to persistent inflation and prevent the Federal Reserve from lowering interest rates.

Regarding market timing, Jeremy reacts to Tom Lee's perspective on market bottoms, warning that short-term price action is often subject to manipulation. He advises investors to use the Volatility Index (VIX) as a guide: a VIX over 25 suggests good pricing, over 40 indicates a 'load the boat' opportunity, and over 50 suggests going 'all in.' Jeremy also touches on the impact of AI agents, referencing Jensen Huang's comments on 'OpenClaw' (OpenSource AI software), predicting that these agents will bypass internet middlemen and benefit infrastructure companies like Shopify and Stripe.

AMD: Jeremy specifically mentions that any price point below $200 represents a strong buying opportunity for this semiconductor leader. He remains bullish on big tech's long-term prospects despite the current daily fluctuations. The stock is viewed as a primary pick for those looking to capitalize on the AI and hardware sector.

Caterpillar (CAT): Jeremy is very bearish on Caterpillar at current levels, noting it has doubled in the past year. He points out that the stock is trading at a forward P/E of 31, which is significantly higher than its historical range of 10 to 18. He calls it a 'scary stock' that is due for a major pullback.

RH (Restoration Hardware): Jeremy finds the current price of RH tempting but expresses deep concern over the company's balance sheet. He criticizes management for aggressive share buybacks at bad prices, which depleted their cash reserves. He is currently hesitant to buy until the balance sheet shows more strength.

Adobe (ADBE): Jeremy views Adobe as a stock that has successfully demonstrated a bottoming pattern. He notes it is up significantly over the past five trading days and believes it is a leader in the current SaaS recovery. As long as the NASDAQ does not experience a correction exceeding 10%, he believes Adobe's lows are behind it.

Mentioned Stocks

AMD

Sentiment: BUYAction: RECOMMENDED

Reasoning: Jeremy states that anything under $200 for AMD is a buy, as he views it as a strong long-term play in the big tech and AI sector.

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CRM

Sentiment: BUYAction: RECOMMENDED

Reasoning: Jeremy identifies Salesforce as part of the SaaS group that has bottomed out and is showing strength even when the broader Dow index is down significantly.

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PYPL

Sentiment: BUYAction: RECOMMENDED

Reasoning: Jeremy notes unusual upward momentum despite market turmoil, suggesting investors are convinced a buyout is coming. He mentions it is up over 23% from recent lows.

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ADBE

Sentiment: BUYAction: RECOMMENDED

Reasoning: Jeremy believes Adobe has bottomed out and represents a recovery play in the SaaS sector, showing strong momentum over the last week.

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Sentiment: HOLD

Reasoning: While the price is tempting, Jeremy is avoiding it due to a 'trash' balance sheet caused by poorly timed share buybacks that depleted cash reserves.

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CAT

Sentiment: SELL

Reasoning: Jeremy argues the stock is overvalued at a 31 forward P/E compared to its historical range of 10-18 and is due for a significant pullback after doubling in price over the past year.

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