Hear Me Out - What if We Rally Furiously?

Watch on YouTube ↗  |  April 21, 2026 at 21:00  |  1:00:30  |  The Compound News
Speakers
Tom Lee — Managing Partner & Head of Research, Fundstrat
Michael Batnick — Managing Partner, Ritholtz Wealth Management
Josh Brown — CEO, Ritholtz Wealth Management

Summary

Josh Brown and Michael Batnick discuss the market implications of Apple's CEO transition, Tom Lee's wildly bullish S&P 500 forecast, and the breakout in small and micro cap stocks. They also analyze earnings from Netflix, Morgan Stanley, and Schwab, touching on AI's disruptive potential in finance and the technical strength of Caterpillar. The overarching theme is a market rally driven by multiple expansion, earnings acceleration, and a rotation into smaller caps.

  • Apple CEO Tim Cook steps down after a historic run, succeeded by product-focused John Turnis.
  • Tom Lee predicts an 18-24 month furious rally for the S&P 500 due to multiple expansion and earnings growth.
  • Small cap and micro cap indices are breaking out, seen as beneficiaries of AI spending and rate cut sensitivity.
  • Netflix earnings show strong fundamentals but stock sells off; Batnick is buying on weakness.
  • Morgan Stanley's wealth management business is highlighted as a dominant, high-growth funnel.
  • Schwab's earnings are solid, but concerns over cash sweep revenue from AI tools are dismissed.
  • Caterpillar's chart shows a sustained, powerful uptrend but is noted as extended.
  • The market rally is characterized by FOMO and a lack of fear, with historical patterns suggesting further gains.
Trade Ideas
Tom Lee Managing Partner & Head of Research, Fundstrat 21:14
S&P 500 poised for multi-expansion and earnings growth.
The US market is set for a furious rally over the next 18-24 months, potentially one of the best periods in history, because multiples should expand (not contract) due to the US's strong position, earnings are accelerating, retail investors have not fully returned, and international investors are seeking growth only available in the S&P 500.
SPY HIGH
Michael Batnick Managing Partner, Ritholtz Wealth Management 36:14
Buy Netflix on weakness as a quality compounder.
Netflix is a high-quality global leader in streaming, and the recent post-earnings sell-off is an opportunity to buy. The company is a quality compounder with record revenue, a growing ad platform, and strong long-term guidance. Despite near-term competitive concerns with YouTube, the stock's weakness allows for lowering average cost with buy limit orders in the low $90s.
NFLX HIGH
Michael Batnick Managing Partner, Ritholtz Wealth Management 51:38
Small caps breaking out as AI beneficiaries.
Small cap stocks are breaking out after a multi-year bear market, with the Russell 2000 showing a clean technical breakout. This move represents a handoff from the AI hyperscaler capex theme to the beneficiary theme, as small companies are the customers for AI spending and are more sensitive to eventual rate cuts. Micro caps have also rallied furiously, up 75% over the past year.
IWM IWC HIGH
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This The Compound News video, published April 21, 2026, features Tom Lee, Michael Batnick discussing SPY, NFLX, IWM, IWC. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Tom Lee, Michael Batnick  · Tickers: SPY, NFLX, IWM, IWC