These Are the Stocks I'd Buy If They Drop Further
Summary
Couch Investor provides a market outlook focused on the recent volatility following a hotter-than-expected CPI report. He emphasizes that long-term investors should not chase the 'dip' in semiconductor and AI names, as many have doubled in price over the last 45 days and remain overextended despite a 5-10% drop. Instead, he highlights a rotation where money is flowing out of high-quality software and fintech names, creating better opportunities elsewhere. He recently increased his cash position to over 6% by taking profits in major winners, allowing him to be ready for a more significant market correction.
Mentioned Stocks
Reasoning: Couch Investor sold shares of Rocket Lab for a 9.7% profit. He expressed a desire to see the stock price come down significantly, specifically mentioning a target of well under $100 per share, to buy back in with his raised cash.
Reasoning: Couch Investor explicitly mentioned taking a 17.24% profit on Micron. He believes the stock has run up too much (700% in 7 months) and that the current dip is not yet worth buying as the sector remains overextended.
Reasoning: Couch Investor sold his position in AMD for a 9.6% profit. He is raising cash to be prepared for a larger potential dip, noting that the stock had been going up consistently and it was time to lock in gains.
Reasoning: He sees SoFi as an obvious name for long-term investors despite current downward trends. He praises their 41% revenue growth and thinks the stock is trading at super low prices due to macro concerns that are already priced in.
Reasoning: Couch Investor views Shopify as a high-quality company. He stated that everything around the low $80s would be a good entry point for him to start a position.
Reasoning: Couch Investor took a 9.15% profit on Google. He mentioned that if the stock falls back to $350 or under, he would consider using his increased cash position to accumulate more shares.