Ticker Take with Jon Erlichman
A weekly newsletter on investing.
A recap of the markets
Market euphoria has eased up a bit as we’ve moved into July. But as you’ll hear from some of the guests in this week’s newsletter, sentiment for U.S. equities remains bullish. Tariff tensions aside, Thursday’s better-than-expected jobless claims added to the list of encouraging economic data of late, which could help stocks continue their upward surge since April. Worth noting — July tends to be one of the better months for the S&P 500, looking back at the past 20 years worth of performance.
Can tech stocks keep rising?
In our latest Ticker Take video, we spoke with a successful investor who thinks they can. Market veteran Bruce Murray explained why the AI boom is different than the dot com boom…AND shared his 7 top tech stock holdings! You can find out what they are by watching below!
Tech strength could fuel S&P 500
I caught up with Sadiq Adatia, Chief Investment Officer at BMO Asset Management. After starting the year more upbeat on international markets, Adatia is now advising clients to lean into the U.S. stock story again — in particular, tech. He suspects that sectors earnings strength will help lead to some outperformance for the rest of the year. Also of note, he’s neutral on gold for the first time in two years. He still likes it as a portfolio hedge, but is more cautious after the run-up.
3 stock picks: Tesla, Nvidia and Lockheed Martin
Can you believe Nvidia is now worth $4 trillion?
I spoke with Alex Morris of F/m Investments who highlighted three names he’s recommending to investors right now: Nvidia, because he sees it as the clear beneficiary of the AI boom with no signs of letting up. He also likes Lockheed Martin because of increased geopolitical uncertainty and NATO spending. Finally, he likes Tesla because he says that despite all of the headwinds, there is not enough evidence that drivers are selling their vehicles to shift to other brands.
Pounding the table on IREN and CIFR
Eric Jackson, founder and president of EMJ Capital has identified a good number of winners in his public comments over the past year — from DEFI to BTQ. Two stocks he’s been really vocal about are IREN and CIFR, which he still sees as relatively undiscovered AI plays. As Eric notes, we know about the AI chips from NVDA, we know about the hyperscalers like MSFT, AMZN and GOOG, we know about AI services like PLTR, we know recently about hosted AI services from CRWV which has surged since its March IPO. However, in Eric’s opinion, the market hasn’t paid as much attention to the folks actually building out the AI data centers, buying the land, getting the permits to hook up to the power grid and that’s what IREN, CIFR, and CORZ do.
Technical talk: 4 stock recommendations
I had a good conversation with Larry Tentarelli, Chief Technical Strategist at Blue Chip Daily Trend Report. He identified four stocks that are displaying encouraging technical trends, making them solid picks in his opinion: Royal Bank of Canada, Cameo, Imperial Oil and CrowdStrike.
Time to buy U.S. financials?
Speaking of technicals, Sid Mokhtari is suggesting U.S. financial stocks look encouraging in the month of July. I spoke to Mokhtari, Chief Market Technician at CIBC Capital Markets, who is recommending names such as Goldman Sachs, Citigroup, Capital One, Morgan Stanley, Wells Fargo and JP Morgan right now. As for Canada, he’s recommending a pair trade, where investors add exposure to Bank of Montreal and reduce their exposure to TD Bank, which has been a fairly hot stock.
Meanwhile, from a fundamental perspective, Julien Nono-Womdim of Goodreid Investment Counsel is also recommending some U.S. financials right now. His top picks are Goldman Sachs, StoneX Group and Piper Sandler.
3 picks from the auto sector
I spoke with Garrett Nelson, Senior VP and Equity Analyst at CFRA who shared his three top picks in the auto sector — Carmax, (KMX, NYSE) which he thinks is worth $100 per share, AutoNation, (AN, NYSE) which he thinks is worth $225, and General Motors, (GM, NYSE) for which he has a $64 price target.
In dividends we trust?
I did a post a few days ago about what annual dividends you’d be paid if you currently invested $10,000 in a range of stocks. The way we selected those stocks was heavily influenced by their dividend yield, given a higher dividend yield helps investors to lock in more dividends as they acquire more shares. Of course, the caveat with dividend yields is that they go up when a stock goes down and sometimes extremely high yields are seen as unsustainable. That said, here’s a group of stocks that would currently pay you $300 or more for the year…
Dow Inc: $983
Enbridge: $841
Alexander’s Inc: $774
Altria: $681
Pfizer: $678
UPS: $630
Edison International: $629
Kraft Heinz: $600
Verizon: $497
PepsiCo: $415
Merck: $399
Public Storage: $396
Exon Mobil: $352
J&J: $333
ConocoPhillips: $331
Medtronic: $321
Fairfax Financial: $300
Disclaimer: this content is for informational purposes only and does not constitute legal, financial, or professional advice. Always consult a qualified professional regarding your individual situation.