Oracle(US:ORCL) CNBC Television·2025-09-11 11:18Inflation & Monetary Policy - The market is shifting focus from inflation reports to jobs reports, with the expectation that inflation numbers are decreasing [1][2] - The company's internal CPI measure was almost 100 basis points (1%) below the actual number last month, indicating housing and shelter as key drivers [2] - While a 25 basis point rate hike is expected, a 50 basis point hike could be justified, although only 10% of the market forecasts this [3] - The company believes underlying inflation trends are improving and the Fed should look past tariff-induced noise [6] AI & Tech Sector - The AI trade is considered to be in its early stages, potentially the "third inning," with software identified as the next area for growth [9][10] - The company is a strong believer in the long-term impact of AI on the economy, markets, and stocks, anticipating broader participation beyond chip stocks [10] - A key focus is on mega-cap tech, especially after Oracle's strong results, suggesting AI-focused names are still attractive [7][8] European Markets - Despite political turmoil in France and rising tensions in the Middle East, Europe remains an attractive investment opportunity [11][12] - The company favors European defense and infrastructure investments as a "next decade trade" due to supportive valuations [13][14] - The company recommends focusing on specific sectors like defense (e g BA Systems) and infrastructure investment within the broader European economy [14] Investment Strategy - The company suggests a Wisdom Tree ETF (WTV) focused on high dividend and buyback yields, offering a close to 7% shareholder yield [14][15] - This ETF targets companies that believe their stocks are cheap and are buying back approximately 5% of their shares outstanding [15] - The dividend/buyback strategy is seen as a way to participate in the AI story's diffusion through the economy, targeting companies that will utilize AI and consider their stocks undervalued [16]