Lloyd: Gold Still a Buy, GOOGL & MSFT to Outperform AMZN in 2026

Market Overview - The S&P 500 and NASDAQ experienced a rebound in December after being down approximately 7% from their peak a month prior, driven by increased liquidity in the market [2] - The Federal Reserve is actively injecting liquidity into the stock market on a weekly basis, contributing to a favorable market environment [3] Commodities Insights - Gold prices have seen a significant drop of $131, raising questions about whether this presents a buying opportunity; generally, it is viewed as such despite potential volatility [4][5] - The demand for commodities, particularly copper, is expected to rise significantly due to its essential role in AI infrastructure, with copper prices projected at $12,000 per ton [8][9] AI and Technology Sector - The AI trade is anticipated to expand in 2026, with a focus on second and third derivative plays as liquidity flows into various sectors [11] - Companies like MEI, which operates in the fintech and AI space, are seen as potential investment opportunities, especially as they are currently down about 20% from their highs [12] Stock Picks and Predictions - Microsoft and Google are favored over Amazon in the "MAG 7" stocks due to their growth potential, particularly in cloud services and chip infrastructure [14] - Blue Owl Capital is highlighted as a bullish asset management firm, benefiting from a lower rate environment and strong liquidity for acquisitions [15] - Coreweave, a high beta name in the AI space, is noted for its potential to benefit from strong liquidity, although it carries significant risk [17] Market Forecast - The S&P 500 is projected to end the year close to 7,000, with an expected increase of 5-10% from current levels, although the MAG 7 may not perform as well as other stocks [18][19]