Healthy summer rotation into value as well as defensive sectors tech leadership is back in the driver's seat while with AI monetization shifting from promises to concrete earnings and mega caps, including Microsoft and Amazon, investors are weighing short-term volatility against a dynamic resilient bull market thesis.
We here at the New York Stock Exchange to break down why the tech trade is back on and his pathway to S&P 8000 is still smothers to CEO of RDS great to have you here.
Thank you so much for joining.
Well it's hard to believe that you and I were talking about how we're here at almost the midway point of August and back. right around the corner and we've seen so much volatility this year.
But when it comes to your year-end target for S&P 500, tell us the why.
Yes, I think 8000 is the price target for us, but at the end of the day that target could very easily be accomplished by revisiting the low 7,000s, and it's all about the love-hate relationship with tech.
AI, specifically the buildout of AI, it costs a lot of money.
There's a lot of money being spent and right now investors want to see profitability.
Remy, if they don't see that profitability, if they don't see extreme profits, these stocks are getting punished and penalized, and what led us higher could easily take us lower.
Then we're seeing buyers come in and scoop up those value names because they know long term these companies are going to lead us into the next frontier what we're calling the 4th industrial revolution, artificial intelligence will change the way that we live and so this money that they are putting into the AI build out.
If it can turn into profits, investors are rewarding them.
If it doesn't turn into the profit that is expected, they're punished.
This type of volatility is here to stay.
It's the price of admission on our way to $8000.
It is certainly not a straight line up.
But what we saw, as you mentioned, was the rotation out of tech.
So these, these dollars that are maybe not happy with what they're seeing are not leaving the market altogether.
Instead they're rotating to other sectors in the market, and that is exactly what it takes to continue.
This bull run we've seen earnings for the last 7 quarters in a row continue to increase, double digit gains.
We love what we're seeing in this earnings season.
We continue to expect the same going throughout the year.
Yes, and Dale, as you mentioned, we have a lot to contend with as we head into the final months of 2026.
And given the fact that we've seen earnings so far come in mostly above expectations, I do want to zoom in on a few key names when it comes to the.
Trade, in particular Microsoft as well as Palantir.
So what have they told you about growth?
Yes, well, Microsoft, Palantir, even Amazon tells us that it's possible to be profitable in this environment.
You know, trillions of dollars of spending have to result very soon in at least billions of dollars of profits.
If they don't, again, punishment comes to those names.
We like Microsoft.
We think that it has been sold off substantially in its lows.
We continue to buy.
Into those sell-offs and even scooped up a lot more at the low point we've been handsomely rewarded since then.
We think Microsoft is a name that gets to 600 and that's our price target for Microsoft. $600 a share is definitely a fair place for Microsoft to be trading.
We got a little bit of room to go between now and then, so we like that run up.
We also like Palantir.
We think that Palantir is, uh, setting itself up to be the operating system of the world for AI.
When you think about government contracts, healthcare contracts that weaves its way into our life in ways.
Don't even understand.
We like that name in particular and what their earnings call told us was that profitability is here and it very easily could be here to stay going forward into the next couple of quarters.
Yes, and we can't forget about the neo clouds that are reporting this week even though the earnings season is slowly winding down.
Sure, so we will be paying close attention to weave as well as Nevius.
So what guidance metrics will you be paying attention to and how will that determine.
Long term winners, yeah, you know, there's that dynamic between Coreweave and Nibius, and we're, we're torn between the two.
We've been a big believer in core weave since its IPO.
We rode it up to its peak.
We sold a little bit, trimmed it there.
We've added to its lows, and, and again, the last couple of weeks for us withholding core weave from its low point's been phenomenal.
Uh, Nbius is one that we believe is maybe a little bit more profitable, a little bit of a clearer pathway to profitability.
We think that, you know, there's a ton of spending going into these uh.
Cloud names and yet to be able to turn them into profit has still kind of something we're looking for but we haven't quite seen just yet.
So with that in mind, we'll be paying very close attention to forward guidance as you mentioned between both of these names and we want to see what mega cap names or what mega cap companies are backing these names.
For instance, Crewe, we think that Crewe still has a substantial backing from, uh, Nvidia and until we see that Nvidia pull back and they think they're one of the leaders, until we think that they have changed their thesis on that, we stay.
Invested with Corew through its highs and lows.
Nus, however, is starting to take the front running position in our opinion between the two, and we like both of those names going into earnings.
Buying into the earnings may not be the most appropriate thing to do, but if you have it now, we're telling our investors if you have it now, it's too late to trim it at this point in time.
We think holding it until we see what happens in earnings because it will move the name one way or the other.
Both of those names likely will move at close after their earnings have have have posted.
Dale, when it comes to retail investors out there, some of them may be more risk averse than others.
So I understand that you say that every dollar in a portfolio needs a job.
So for investors out there who are looking for AI exposure but are risk averse, what would you say to them?
Yes, you know, I think it's clear to some, but I want to make it very clear to those who maybe don't understand when I say every dollar needs a job, what I'm Getting it is not every dollar should be doing the same job.
Not every dollar is out there to hunt for the next Microsoft, let's say, or the, or in these neo cloud names.
Not every dollar belongs in Creweave at all.
I think that you've got to be able to with the clients we work with, Remy, we, we're looking for less volatility.
We're looking for those who are, say, over the age of 59.5 heading into, uh, into retirement.
They really need some stability. pieces of their portfolio.
So some pieces of your portfolio need to be hunting for dividends.
They need stability.
They need less volatility.
Some pieces of your money still likely need to be hunting for the big, the big elephants if you will, that are likely to develop.
So depending on what pieces of money you're talking about, if you've got money that's kind of long term growth minded but you really don't want to stomach volatility or maybe internally you can't, you can't.
Stomach volatility because of your emotions.
We like a name right now and it's a ticker NJUL and what it is is basically a packaged options, uh, strategy that gives you upside exposure to the queues, the QQQ position with downside protection against the queue volatility for the next 12 months.
In this case for the next 11 months from July to July, as much as 20% upside participation.
And 15% downside protection.
We like leaning into this option strategy for clients who can't stomach the volatility but want exposure to the high tech flying names.
Well, Dale, we have been seeing plenty of volatility in 2026 and we may potentially see even more.
So I appreciate your time today.
We will have to leave it there, but I appreciate always a pleasure.
Thank you so much.
