It’s happening investors‼️ Do this Now
Summary
Jeremy begins by noting his portfolio's resilience despite his largest position, AMD, being down, attributing it to broader market trends he identified earlier. He emphasizes that the market is currently experiencing a rotation, with momentum shifting from concentrated tech and AI-focused stocks towards consumer discretionary, value, and dividend-paying companies. Jeremy highlights several consumer discretionary stocks like Elf, Revolve, Nike, American Express, Cake, and Celsius, which are showing significant gains, suggesting this trend reflects market confidence in future lower interest rates and an improving economy.
Conversely, he observes weakness in parts of the tech sector, including Apple, which is struggling due to disappointment around its recent AI announcements and perceived lack of innovation. However, Jeremy maintains a bullish outlook on chip stocks like AMD and Micron, believing they are poised for substantial future gains, with AMD potentially reaching $1000+ and Micron $2000+ in 9-15 months, driven by anticipated "shock and awe" earnings quarters and continued high CapEx spending from major tech companies. He also advises long-term investors to consider adding to Meta during periods of uncertainty, predicting a potential rally to $1000 if the company provides clear revenue generation plans for its massive AI investments, while also warning of significant downside risk to $350 in a severe market downturn. Jeremy is highly skeptical of the upcoming SpaceX IPO, advising against buying into the hype and comparing it to previous unfulfilled promises from Elon Musk. He stresses the importance of a diversified portfolio (growth, value, dividends) to navigate market rotations and seek the best return on investment rather than chasing hot trends. He dismisses the current Nasdaq pullback of 5% from all-time highs as insignificant, stating that a true market concern would require a 10-20% drop.
Mentioned Stocks
Reasoning: Jeremy mentions Nike, which was "up over 3% here today," as another example of a consumer discretionary stock gaining momentum due to the market's rotation into this sector. He notes that buying Nike is a discretionary decision.
Reasoning: Jeremy advises against counting Micron out, believing it will go "significantly higher" to potentially "$2,000" in the next 9 to 15 months. He cites a "pretty strong case" based on dramatically increasing earnings per share and continued heavy CapEx spending by big tech companies.
Reasoning: Jeremy notes that Celsius is "finally getting a little momentum" as part of the broader trend of consumer discretionary stocks seeing increased activity and gains.
Reasoning: Jeremy suggests long-term investors should "add to your Meta position if anything" during periods of uncertainty. He argues Meta could reach "$1,000 and it does it pretty quick" if CEO Zuckerberg provides clear data on how massive AI investments will drive future revenue. Otherwise, it will likely stay in the "$500-600 range." He also warns of a potential drop to $350 in a severe market downturn.
Reasoning: Jeremy highlights Elf as a consumer discretionary stock "climbing back on the shelf, up another 6 plus percent here today." He notes its strong momentum as part of the broader market rotation and believes it should be classified as a consumer staple due to its affordable products.
Reasoning: Jeremy highlights Cake (Cheesecake Factory) stating, "Cake keeps running. Look at Cake. Cake keeps inching closer and closer to 70 bucks," as an example of consumer discretionary stocks showing strong performance in the current market environment.
Reasoning: Jeremy states AMD is his number one biggest position and, despite recent dips, expresses strong confidence it will go "significantly higher" to potentially "a thousand plus" in the next 9 to 15 months. He anticipates "several shock and awe quarters" with strong guidance and sees no reason for fear given continued heavy CapEx spending by major tech companies on AI.
Reasoning: Jeremy points to Revolve as a "perfect consumer discretionary type stock" that was "up almost 4% here today." He uses it as an example of stocks gaining momentum in the current market rotation, driven by confidence in a better economy.
Reasoning: Jeremy includes American Express, which was "up 2% here today," among the consumer discretionary stocks showing momentum. He explains that this stock tends to move up when the consumer discretionary sector is performing well.
Reasoning: Jeremy notes Apple is "really weak" due to high expectations for the recent WWDC event, which resulted in a "big letdown" regarding AI Siri, with no definitive launch date until next year. He perceives a negative sentiment around the stock for the near future and criticizes Apple for not being innovative enough recently, stating the company is too big to be fundamentally changed by new product launches.
Reasoning: Jeremy expresses strong disinterest in the SpaceX IPO, stating, "Are you kidding me? You flip my flapjacks. I could understand like some people trying to gamble on it... Dude, no." He warns against the "SpaceX hype," comparing Elon Musk's promises to past unfulfilled predictions for Tesla's robo-taxis.