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00:00 Speaker A
Marion, always uh a treat to get some time with you here. Take us through your thesis on tech stocks.
00:06 Speaker B
So, there’s still the leaders of the market. I still see them leading particularly the semi’s. The semi’s really are the true leader of the secular bull market. But in our work, what we’re seeing is that they may take a pause or the word that we’re using is a reset.
00:23 Speaker B
Now, if you look for example at an Nvidia, it made a new high, but it was able not able to hold its new high. It’s been in a trading range for months.
00:35 Speaker B
Now, either we’re going to stay in that trading range or we’ll get a pullback. And even if you look at the semiconductor ETFs, they’re trading the same. Um, so I think the leadership of tech takes a break.
00:46 Speaker B
You know, I do think we’re going to get a pullback, a correction. Um, but I’d be a buyer on the correction.
00:52 Speaker B
Again, I still see them as leaders, but that’s going to lead to volatility in 2026 and it’s the midterm election year and it’s very normal to have volatility um in a midterm year.
01:04 Speaker B
So I’m just telling our clients to brace for volatility, to be fearless, you know, you don’t have to trade these and if you don’t own them or if you want to add to them, you’re going to get an opportunity in 2026.
01:16 Speaker A
Marion, do you see that reset happening in the first quarter? And if you do, what is that what what triggers that that moment?
01:23 Speaker B
Well, I think you’re already in it. I think it’s already started. Um and we got a really strong GDP report and the market’s not going to now like rate cuts.
01:31 Speaker B
So, you know, I I think you’ve already started part of the volatility that we’re going to see in 2026.
01:37 Speaker B
So, um the other concern I have is earnings have been spectacular. And analysts didn’t see the earnings right away. At least not all of the analysts saw the earnings right away. And now everybody seems to be on board, you know, in general, the market is looking for earnings to grow 15% next year.
01:53 Speaker B
And the market maybe earnings can be up 15%. But if we don’t meet expectations or the whisper numbers, the market is not going to like that.
02:02 Speaker B
So I think that’s another big hurdle that we’re going to have in 2026 is can we beat these now high expectations in in the earnings forecast?