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Feb 17
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LONG
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Brian Levitt
Global Market Strategist, Invesco
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Levitt notes a rotation from "virtual themes" (AI concentration) to the "physical world." The S&P 500 Equal Weight (RSP) is near all-time highs, while tech has seen 3 weeks of losses. The market is broadening out. As investors take profits in Mag-7/AI, capital flows into undervalued cyclical sectors (Financials, Industrials, Energy) and mid-caps that benefit from economic resilience and re-industrialization. Long RSP and Cyclical Sectors. A recession would hit cyclicals harder than cash-rich tech monopolies. |
Bloomberg Markets
Open Interest 2/17/2026
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Feb 17
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—
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LONG
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Memani
Investment Strategist / CIO
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"It is really going to be more about the sectors of the economy, like banking, for example, where you have substantial tailwinds, you know, deregulation, capital relief." While tech faces valuation compression, banks are trading at low multiples. The combination of a stable economy ("soft landing") and specific policy catalysts (deregulation) creates a setup for multiple expansion in the financial sector. LONG US BANKS as a beneficiary of the rotation into value/fundamentals. Re-acceleration of inflation forcing higher rates, or a recession (hard landing) increasing credit defaults. |
Bloomberg Markets
Memani Says the Soft Landing Is Arriving
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Feb 16
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LONG
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Grace Peters
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Tech valuations are stretched, but earnings growth is broadening (13% growth). "Old Economy" sectors are the beneficiaries of the AI build-out (Industrials building data centers, power generation) and are seeing earnings inflections (Health Care). They offer operational leverage to AI without the valuation premium of the Mag-7. LONG Cyclicals and Defensives (Diversification away from pure Tech). Economic slowdown hits cyclicals hardest. |
Bloomberg Markets
'Shared Values' discussed in Munich; RAM Conc...
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Feb 16
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LONG
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Chief Investment Strategist
ING Belgium
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European banks are trading at "very low by historical standards" valuations (approx 1x price-to-book, 10-11x earnings) and are benefiting from a "steep yield curve." A steep yield curve naturally expands Net Interest Margin (NIM) for banks. Combined with a non-recessionary environment in Europe and dirt-cheap valuations, the risk/reward is heavily skewed to the upside compared to US peers. LONG. Focus on European financials. Regulatory intervention or a sudden flattening of the yield curve. |
Bloomberg Markets
Bonds Rise on Rate-Cut Bets; Gold Dips Below ...
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Feb 16
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LONG
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Adam Lynn
Market Strategist / Guest Speaker
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"What's been its weakness for the past few years is now actually playing to its strengths... It's got financials which are performing pretty well. It's got industrials." The US market is heavily skewed toward expensive tech. As global growth expectations rise ("nice cyclical environment"), capital is rotating into undervalued cyclical sectors (Financials/Industrials) where Europe has a heavy weighting. This acts as a valuation floor and a diversification play against US concentration. LONG Europe as a cyclical/value alternative to US Tech. Contagion from a sharp US correction could drag down global betas despite better valuations. |
Bloomberg Markets
US Stocks to Lag European Peers on AI
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Feb 14
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LONG
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Luigi de Vecchi
Chairman, Capital Markets, Citigroup EMEA
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"Financial institutions have expanded their presence in Milan... Last year was the year of the financial services... probably only the beginning of a wave of deals." Milan is transitioning from just a fashion capital to a legitimate financial hub. The combination of political stability and HNWI migration is triggering an M&A super-cycle. Global banks (like Goldman and Citi, mentioned as De Vecchi's former firms) expanding their footprint there will capture advisory fees. LONG. Investment banks with strong European advisory arms will benefit from the "wave of deals." European recession or ECB interest rate volatility dampening deal flow. |
Bloomberg Markets
Why The Ultra Rich Are Moving to Milan
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Feb 14
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LONG
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Narrator
Video Narrator
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The narrator states that quantum supremacy "could mean accelerated progress in areas like drug research, artificial intelligence, defense and finance." These sectors are the direct beneficiaries of quantum utility. The ability to process data in parallel (qubits) rather than sequentially (bits) unlocks capabilities in molecular modeling (Biotech), encryption (Defense), and complex market simulation (Finance) that are currently impossible. Long the downstream sectors that will leverage quantum speed to revolutionize their R&D and operational efficiency. The technology remains experimental; failure to achieve stability means these sectors cannot yet deploy these tools. |
Bloomberg Markets
Can Quantum Computing Power the AI Boom?
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Feb 13
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LONG
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Thomas Michaud
CEO, KBW
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KBW CEO Michaud notes that fundamentals (loan growth, credit quality) are green lights and the "moratorium on bank mergers" for banks over $200B is effectively over. Wells Fargo's Willis advises rotating into Financials as a way to play AI trends through incumbents. The combination of strong fundamentals, a regulatory environment conducive to M&A (creating takeover premiums), and a rotation out of expensive tech makes financials attractive. LONG Regional Banks and Financials for M&A upside and valuation rotation. Commercial real estate credit deterioration; interest rate volatility. |
Bloomberg Markets
Stocks Lower as Tech Selloff Deepens Ahead of...
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Feb 12
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AVOID
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Julian Emanuel
Evercore ISI
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Emanuel notes that Software, Legal, and Financial professions are viewed as "most likely to be disrupted." Financials are underperforming despite the bull market. The market is pricing in existential risk for business models based on billable hours or code generation. Until these companies prove they can monetize AI rather than be replaced by it, multiples will compress. AVOID sectors in the crosshairs of the "AI Heat Seeking Missile." Oversold conditions could lead to a sharp relief rally if earnings prove resilient. |
Bloomberg Markets
Bloomberg Surveillance 2/12/2026
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Feb 12
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LONG
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Devin Ryan
Citizens JMP
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Ryan argues the selloff in Wealth Managers (Schwab, Morgan Stanley) due to AI fears is wrong. AI is a productivity tool, not a replacement for relationship-based advice. The market has incorrectly priced these firms as "disrupted" when they will actually become more efficient. LONG Financials/Wealth Managers as a contrarian value play against the "AI Death" narrative. AI agents actually do begin to erode fee structures faster than anticipated. |
Bloomberg Markets
Bloomberg Surveillance 2/12/2026
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Feb 12
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LONG
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Ashu Khullar
CEO, Citi India (Implied based on context of Citi India leadership and "Paul" as interviewer)
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Global companies are listing their Indian subsidiaries on local exchanges because "Indian valuations are really rich." There is a strong pipeline of IPOs for the next 12-24 months. High valuations and active capital markets are the perfect environment for Investment Banks and Exchanges. Increased IPO activity drives advisory fees, underwriting revenue, and trading volumes. Long Financials (specifically Investment Banks and Exchanges operating in India) to capture the fee pool from this IPO boom. Market correction freezing the IPO window. |
Bloomberg Markets
Citi Expects India Investment Boost From Trad...
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Feb 12
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AVOID
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Julian Emanuel
Evercore ISI
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The speaker observes "Financials underperforming at the same time" that Staples are rallying. This sector is currently the source of funds for the rotation into Staples. While the speaker doesn't predict a crash, the relative strength is clearly negative compared to defensive sectors. AVOID. The sector is lagging in the current "air disruption" trade environment. If the economy re-accelerates or yields rise (benefiting net interest margins), financials could snap back. |
Bloomberg Markets
Julian Emanuel Sees FOMO Driving Market Stapl...
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Feb 11
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LONG
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Dan Ives
Star Analyst at Wedbush
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"And those derivatives, you could argue you're gonna go into energy, financials, health care as it plays out in terms of broadening market." Second-order thinking suggests that the AI trade isn't just about chips and software. The massive power requirements (Energy) and economic efficiency gains (Financials/Healthcare) will cause the "yellow brick road" of capital to flow into these sectors as the market broadens. LONG as a rotation/derivative play on the AI theme. Macroeconomic slowdowns affecting cyclical sectors like energy and financials regardless of AI adoption. |
Bloomberg Markets
Ives Still Sees Big Winners Despite Software ...
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Feb 11
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SHORT
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Deirdre Bosa
Anchor/Reporter, CNBC Tech Check
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"Startup Altruist launched an AI tax planning tool yesterday, and it took billions off wealth management stocks." High-margin financial services (like tax planning) are being automated by AI. This commoditizes the service, destroying the pricing power and moat of traditional wealth management firms. SHORT. The market is "not waiting to find out who's right" and is selling incumbents immediately upon the release of competitive AI tools. Incumbents may acquire these startups or replicate the tools quickly. |
CNBC
AI disruption fears rattle stocks
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Feb 11
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LONG
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Lisa Shalett
Chief Investment Officer, Morgan Stanley Wealth Management
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Financials sold off sharply (e.g., SCHW down 7%) on fears of AI disruption from new fintech tools. The selloff is "silly." AI tools (like tax planning) rely on data that incumbents (banks/wealth managers) own and control. The disruption threat is overstated, creating a value entry point in high-quality financials. LONG Financials (Morgan Stanley's #1 high conviction sector). Rapid adoption of AI agents actually displacing human advisors faster than expected. |
Bloomberg Markets
Bloomberg Surveillance 02/11/2026
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Feb 09
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AVOID
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Barry Bannister
Chief Equity Strategist at Stifel
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The market is currently betting on a "smooth rotation" out of tech and into cyclical sectors, but Bannister argues this trade is premature. Cyclical stocks depend on a healthy economy and consumer buying power. Currently, wage growth is slowing, hours worked are not cooperating, and job creation is weak. There is no fundamental "buying power" to support a rally in these sectors yet. Weak monthly job reports and slowing wage growth data contradict the narrative of a robust economic rotation. If economic data suddenly improves or inflation drops faster than expected, allowing real wage growth to recover. |
CNBC
Bitcoin is not digital gold and behaves like ...
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