This report is a small part of the Caruso Insights membership and serves as an excerpt from the full weekend report. It is provided to members as a quick takeaway document for the upcoming week.
Weekend Summary
The recent shortened holiday week saw markets contend with the latest FED FOMC meeting as well as the Israel/Iran conflict. Despite markets continuing to sit within a month-long consolidation, AI focused companies continue to show relative strength. CRWV, AMD, and SNDK made solid progress despite soft general markets.
Elevated war risk worries as well as a stubborn FED continue to put pressure on stocks, though stocks have been maintaining post-tariff gains very well. Any war resolution should help lift markets, and a softening in FED tone (or changing of Fed Chair), will likely provide stimulus as stock approach all time highs. It will be quite odd to see a stubborn FED end up cutting rates at all time highs vs during the April steep sell off. However, that works to the advantage of investors who will eventually receive an additional support to an already strong and strengthening AI bull market.
Our view remains that we are in a bull market similar to the 1990s .com 10 year run. This leaves us focused primarily on all things ai-related whether it be infrastructure related names such as NBIS and GEV or companies beginning to implement AI into revolutionary new products/services such as TSLA and autonomous driving.
The stocks that go up the most from where you bought them are your flowers; those that are down from where you bought them are your weeds. If weeds appear, don't hesitate to reach for the trowel. - William J. O'Neil