Andrew Slimmon 2.9 4 ideas

"I'm not sure I would necessarily bottom fish in that area [software]... we're early in how that industry is going to be turned upside down." Despite recent pullbacks making valuations look cheaper, the sector faces structural disruption (likely AI-related). Buying the dip is dangerous when the fundamental business models are being challenged, suggesting the "lows" are not yet in. Avoid catching the falling knife in Software stocks. Software companies successfully pivot to AI monetization faster than expected.

"I would not chase energy... oil is up a lot. But the stocks are... not up a lot. I wonder whether that's kind of showing some tiredness already in that area." Slimmon identifies a bearish divergence: the underlying commodity (oil) is rallying, but the equities (energy stocks) are failing to follow suit. This price action often signals buyer exhaustion and a lack of institutional conviction in the longevity of the rally. Do not chase the momentum in Energy stocks at these levels. Oil prices spike significantly higher ($100+), forcing energy stocks to catch up.

"We're having a strengthening of the dollar... on a relative basis, you're seeing more money come back into kind of the very large US stocks." A strong USD acts as a headwind for international stocks and commodities (which are priced in dollars). As the "weak dollar" consensus trade unwinds, capital rotates out of Emerging Markets/Europe and seeks safety and growth in US Large Caps. Long US Large Cap Equities as a beneficiary of capital rotation driven by currency strength. The US Dollar weakens unexpectedly; US earnings disappoint.