Two Experts Reveal Their Bullish Picks – AI, Energy, and More

Episode #326 | September 11, 2023

Episode #326 | September 11, 2023

Two Experts Reveal Their Bullish Picks – AI, Energy, and More

In This Episode

On this week's Stansberry Investor Hour, Dan and Corey are joined by two of their Stansberry Research colleagues, Matt McCall and Brett Eversole. You may already be familiar with these names. Matt and Brett are the lead analysts for The McCall Report and True Wealth, respectively.

Dan and Corey kick off the podcast by analyzing AMC Entertainment's recent issuance of millions more shares and whether this will spell the death of this "meme stock." After that, they discuss three famous investors who all made headlines recently for giving negative future market outlooks. Specifically, these investors believe the bubble isn't finished yet and more companies will default on their debt, which could result in a recession by next year. Dan notes...

Nvidia is the fourth-biggest stock in the market. Every time people contribute to their 401(k)s, they're buying Nvidia. They're putting whatever it is, say 5% of their money, into Nvidia, and 7% into Apple. So if any one of those stocks cracks – and Nvidia is certainly the most egregiously overvalued – it could be a problem.

Next, Brett and Matt join the conversation by talking about why they're bullish right now. Matt notes that the reason 2022 was so brutal for investors was because of the Federal Reserve rapidly raising interest rates. While one more small rate hike before the year's end is possible, Matt still thinks the rate cycle is nearly over. This would, in turn, be good for equities and move the markets higher.

The duo goes on to cover specific sectors, industries, and individual companies that they're bullish on. Matt explains that his investment style is discovering big mega-trends and then finding smaller plays within those spaces where opportunity lies. This leads to him mentioning how companies embracing artificial intelligence ("AI") could be big winners in the years to come...

I think we're going to see a new wave of software companies – not all of them, but the ones that are incorporating AI and already have market share – really do well.

Then, Brett shares some of his AI-industry favorites... and notes that the market as a whole has the potential to massively increase productivity, leading to increased margins. Specifically, Brett believes there's a structural change happening in the companies that make up the stock market. He comments...

It really started in 1990. Back then, the margin on the overall market was around 6%. But that's really when these software companies and tech stocks, as we know them, that can have 20%, 30%, 35%, 40% net margins came into existence. And [they] have really taken over the market as a whole.

Finally, Brett and Matt talk briefly about housing supply and homebuilders before launching into the energy sector. Brett emphasizes that while there's a push for green energy, we're going to need fossil fuels for a very long time. Oil and gas companies will continue to be incredibly profitable for many years, he says. Plus, Matt highlights the problem of many renewable-energy projects being completely built but unable to get onto the energy grid because the grid is so old.