After a banging start to the week, stocks look softer for Tuesday as more big bank earnings roll out as well as retail sales data. Geopolitics, sadly, remains a mess.
Lead portfolio manager Bill Smead and his son, co-portfolio manager Cole Smead, think this year will end up in the history books for a mania/bubble over Magnificent 7 tech stocks and AI. The second call from the Smead managers looks to cash in on the “upcoming dominance” of the social media generation — the millennials who represent a hefty and biggest 72.24 million chunk of the population as of 2022.
And while the housing market is tough for both buyers and sellers right now, thanks to high interest rates, the managers are betting on home builders, financial institutions and retail-oriented companies to “feed off the millennial move to the suburbs.” The markets Stock futures ES00, -0.26% NQ00, -0.29% are softer, with Treasury yields BX:TMUBMUSD10Y BX:TMUBMUSD02Y up modestly and oil CL.1, +0.18% edging higher. Bitcoin BTCUSD, +0.50% is hovering at just over $28,000 — one analyst sees $45,000 likely once the SEC approves an ETF.For more market updates plus actionable trade ideas for stocks, options and crypto, subscribe to MarketDiem by Investor’s Business Daily.