This is a stock pickers market, don't abandon tech, says Capital Wealth's Kevin Simpson

Scott Wapner (?) 00:00.350

us now we've said a long and substantive conversation about the markets it seems to be bulls are abound are you

Kevin Simpson (Founder & CIO) 00:09.740

yeah it's hard not to be i mean we had a great conversation to start the show i look at next year scott and i try to think can the markets continue if we take away two of our big headwinds and you touched on it in both cases if we lose the AI trade where it's a rising tide

Kevin Simpson (Founder & CIO) 00:25.460

lifting all tech trade and if you lose a dovish fed can the stock market move higher and i think it can i mean i think if the growth holds up which it should and if earnings are solid that we can still have a good year with a little breadth to the market yeah

Scott Wapner (?) 00:43.790

i mean first of all i don't i don't know who thinks we're going to lose the AI trade well like what's what are the prospects of that and you really believe that if we somehow lose that and there would be a reason why we would quite quite clearly that the market would be able to

Scott Wapner (?) 00:58.310

overcome that yeah

Kevin Simpson (Founder & CIO) 01:00.110

let me be a little bit more clear i don't think we're going to lose the AI trade i think we're going to lose the all in AI trade i'll give you two examples one we took a position in micron last week before the print and that stopped i mean yeah thank you i mean it couldn't have

Kevin Simpson (Founder & CIO) 01:14.470

been better and the and the opposite end of that spectrum that from our portfolio specifically we've been liquidating oracle over the past month because it's been like a little bit of a tale of two different markets and what it means to me is and adam said this it's a stock

Kevin Simpson (Founder & CIO) 01:28.670

pickers market so i don't think anyone watching the show should think when we talk about breath or a broadening market in no way shape or form does that mean you want to abandon tech and think that the trade is going to be a pure value play that humbly is a value manager i just

Kevin Simpson (Founder & CIO) 01:43.750

think that there's opportunities that we need to be a little bit more selective as we always are across the board in twenty twenty six sure i'm

Scott Wapner (?) 01:52.030

glad you mentioned micron because there's a note out today that i thought was really interesting that says basically says earnings expectations in in everything away from tech are are pretty elevated now would you place your bet on those expectations being realized or did micron

Scott Wapner (?) 02:09.830

just prove to you that the best earnings growth is and will continue to be in tech

Kevin Simpson (Founder & CIO) 02:18.030

OK i think it's still going to be in tech as much as i want these other things to come up as much as i love the RSP versus spy and we're seeing it outperform in december we have not seen that trade stick like we run into that direction and then everybody just abandoned it and

Kevin Simpson (Founder & CIO) 02:32.950

goes back to the mag seven eight nine ten so you want the heavy lifting to be done by the right tech stocks people will always pay up for innovation how could they not when we look at the AI landscape but i think that there's other trades out there that are going to be very

Kevin Simpson (Founder & CIO) 02:46.830

profitable like we saw this year in financials industrials maybe next year it's it continues to be consumer discretion and materials kind of thrown into that mix to at least help do the heavy lifting but i i know that there's lots of talk about is the AI trade over do we need to

Kevin Simpson (Founder & CIO) 03:03.350

go elsewhere and and i don't think that should be the conversation nor should it be the expectation do you

Scott Wapner (?) 03:08.910

continue to believe in gold and you added to aem yesterday tell me quickly more before i let you go

Kevin Simpson (Founder & CIO) 03:15.030

yeah real fast i mean look look at this stock it's up one hundred and thirty percent year to date it's been one of our top picks we still believe in the momentum trade for gold moving forward this way you can own a miner instead of the commodity great margins a little bit of a

Kevin Simpson (Founder & CIO) 03:28.390

dividend and very very amazing free cash flow here in this name we're up huge on it and we still believe in the trade so much so that we're adding to it