Markets Under Pressure — Here's What To Buy In This Pullback

Market Overview - Stocks are declining due to President Trump's announcement to increase tariffs from 10% to 15% [1] - Despite short-term volatility, the overall economy is projected to grow at 3% [2] - Earnings growth is expected to be in the low to mid-teens, with a 13% growth in the fourth quarter [3] Investment Opportunities - Down days in the market present good buying opportunities for long-term investors [4] - The technology sector appears oversold, particularly companies in the AI capital expenditure cycle [5] - Small-cap stocks and banks are favored due to their ties to economic growth and positive interest rate spreads [7][8] Company Insights - Nvidia is highlighted as a key holding, with expectations of strong earnings reflecting the AI capex cycle [11] - Google is also positioned well in the AI race, with strong models and cloud infrastructure [12] - JP Morgan is favored for its strong operational execution and is seen as a bet on the overall economy [14][15] Sector Analysis - The financial sector, particularly banks, is expected to benefit from fiscal and potential monetary stimulus [14] - Shopify is viewed positively despite a 25% decline, due to its capabilities in e-commerce and logistics [18] - Gold (GLD) and Bitcoin (IBIT) are both considered long-term investments, with gold currently trading around $5,200 per ounce and Bitcoin above $65,000 [20][22] Market Sentiment - The market is expected to stabilize despite current headwinds from tariffs [28] - A bullish outlook is maintained for the S&P 500, with a target of 8,000 [32]