Powers: Leadership has been narrow, and bull markets don't extend without broader participation

Watch on YouTube ↗  |  January 16, 2026 at 12:48  |  2:57  |  CNBC
Speakers
Matt Powers — Managing Partner at Powers Advisory Group

Summary

Matt Powers says market leadership is broadening beyond tech and AI into materials, consumer staples, and industrials, which he views as a healthy rotation in year four of a bull market. He argues lower rates should favor housing, dividend-paying stocks, value, and capital-intensive businesses, and he selects Home Depot as his top pick on an improving housing backdrop.

  • Market leadership is broadening beyond tech and AI.
  • Materials, consumer staples, and industrials are gaining traction.
  • Powers says narrow leadership must change for the bull market to extend.
  • Lower rates are expected to help housing, dividends, value, and capital-intensive businesses.
  • Housing has a positive setup: rates off peak and possible policy shifts.
  • Home Depot is presented as the top pick tied to housing recovery.
Ideas
Matt Powers Managing Partner at Powers Advisory Group 0:15
Rotation into materials, staples, industrials.
Powers says the market is broadening out of tech and AI into other areas, with materials, consumer staples, and industrials gaining traction early in the year. In year four of a bull market, leadership had been extremely narrow; bull markets don't extend without a change in leadership, so this rotation/redistribution is healthy and positive rather than negative.
XLB XLP XLI HIGH
Matt Powers Managing Partner at Powers Advisory Group 2:11
Lower rates favor housing, dividends, value.
Powers says a major change this year is rates, and markets care more about rate direction than Fed independence politics. Lower rates should help housing, dividend-paying stocks, value, and capital-intensive businesses, and those types of companies are coming back into favor.
HOUSING Dividend-paying stocks Value stocks Capital-intensive businesses HIGH
Matt Powers Managing Partner at Powers Advisory Group 2:23
Home Depot top pick on housing recovery.
Powers selects Home Depot as his top pick, citing positive developments in housing: rates are about 100 basis points off their peak, possible housing policy shifts this year, and lower rates should help housing.
HD MED
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This CNBC video, published January 16, 2026, features Matt Powers discussing XLB, XLP, XLI, HOUSING, Dividend-paying stocks, Value stocks, Capital-intensive businesses, HD. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Matt Powers  · Tickers: XLB, XLP, XLI, HOUSING, Dividend-paying stocks, Value stocks, Capital-intensive businesses, HD