Key insights

• ⚖️ FED meeting and CPI data are key events this week, Investors seek visibility before FED and CPI data release, Apple's WWDC announcement on Artificial Intelligence affected stock performance
• 🍏 Apple, Nvidia, and Tesla are central to technology trends like AI and Millennials, Apple is a strong core portfolio holding for investors, Granny Shots is a thematic portfolio that buys the strongest stocks in a specific theme
• 🤖 AI trade sector picks: Nvidia, Cadence, ARM, AMD, Apple not included for direct beta exposure, Focus on small caps, especially the iwm ETF, since the last Fed decision
• 📈 Small caps have been lagging behind the rest of the market, Potential for small caps to rally up to 50% this year, especially when the FED starts cutting, Small caps have better earnings growth, close to 19% in the Russell 2000
• 📊 Lower PE multiple in Russell 2000 (around 10 times) compared to S&P (16 times), Better growth potential in Russell 2000 with lower multiples, Concerns about rate sensitivity and higher cost of capital for the Russell 2000, Unclear FED policy and data dependency impacting investor decisions
• 💼 Investors may benefit from exposure to small caps when financial conditions ease, Small caps in the Russell 2000 tend to be strong companies that dominate smaller markets

Q&A

• How can investors benefit from exposure to small caps?

  Investors may benefit from exposure to small caps when financial conditions ease. Small caps in the Russell 2000 tend to be strong companies that dominate smaller markets.

• How do the S&P and Russell 2000 compare in terms of PE multiples and growth potential?

  The Russell 2000 has lower PE multiples (around 10 times) compared to the S&P (16 times), suggesting better growth potential and a good risk-reward for investors. However, there are concerns about rate sensitivity and the unclear FED policy.

• What is the potential for small caps mentioned in the video?

  Small caps have been lagging behind the rest of the market, but there is a potential for them to rally up to 50% this year, especially when the FED starts cutting. Small caps have better earnings growth, close to 19% in the Russell 2000.

• What are the AI trade sector picks mentioned in the video?

  The AI trade sector picks include Nvidia, Cadence, ARM, and AMD. Notably, Apple is not included for direct beta exposure. There's also a focus on small caps, particularly the iwm ETF, since the last Fed decision.

• Which companies are central to technology trends like AI and Millennials?

  Apple, Nvidia, and Tesla are at the center of technology trends such as AI and Millennials. Apple is considered a strong core portfolio holding for investors. Granny Shots is a thematic portfolio that buys the strongest stocks in a specific theme.

• What are the key events in focus this week?

  The FED meeting and CPI data are key events in focus this week. Investors are seeking visibility before the FED and CPI data release. Additionally, Apple's WWDC announcement on Artificial Intelligence has impacted stock performance.

• 00:00 The FED meeting and CPI data are in focus, with investors seeking visibility. Apple's WWDC announcement on Artificial Intelligence impacted stock performance.
• 00:49 Apple, Nvidia, and Tesla are at the center of technology trends such as AI and Millennials, and Apple is a strong core portfolio holding for investors.
• 01:30 The AI trade sector picks are Nvidia, Cadence, ARM, and AMD. Apple is not included for direct beta exposure. Small caps, particularly the iwm ETF, have been a focus since the last Fed decision.
• 02:11 Small caps have been lagging behind the rest of the market, but there is still a potential for them to rally up to 50% this year, especially when the FED starts cutting. Small caps have better earnings growth, close to 19% in the Russell 2000.
• 02:53 Comparing S&P and Russell 2000, lower PE multiples suggest better growth and a good risk-reward for investors, but there are concerns about rate sensitivity and the unclear FED policy.
• 03:31 Investors may benefit from exposure to small caps when financial conditions ease. Small caps in the Russell 2000 tend to be strong companies that dominate smaller markets.