Oil prices should carry a geopolitical risk premium because the US-Iran conflict and Strait of Hormuz disruptions remain unresolved, making crude too low near $70. He expects Brent to reach $80-$82 by year-end and sees the upward move as unsurprising given fragile negotiations.
Despite taking some gains, the AI trend remains intact. The focus is on hardware and the AI supply chain, which still offer strong earnings growth. Would add exposure on any setbacks, as AI is still in an early stage and earnings are robust.
Market rotation out of a narrow AI rally into cyclicals and financials is healthy. European financials have been strong, and the portfolio is taking gains on tech and moving into financials to capture broader market breadth.