AI Pullbacks Will Be Bought, Strategist Amoroso Says

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00:00For sectors like consumer discretionary, for example, we heard Home Depot that had some poor

00:03earnings. Can you buy into those sectors until you get confirmation that the Fed will be cutting

00:09and be cutting consecutively? Or is it too early right now to start to play that?

00:14No, I actually think it's a pretty good time to step into something like consumer discretionary,

00:18especially going into the holiday season. It should be a seasonally strong time period. And

00:23also, if we do look at consumer spending in October and early November, it's pacing well.

00:28So I think you have some positive momentum there. And that's despite the fact that consumer

00:32confidence plummeted in the midst of the government shutdown. But here we have the government that is

00:37reopened, the flight schedules that are also reopened. So we have the government workers

00:42that should get their pay back either this week or the week after next. So all of that sets us up

00:48nicely, I think, for this rebound in consumer confidence into year end and into the holiday

00:54season. And if on top of that, we do also get the odds of a rate cut rising once again, which I think

01:00we will, that really solidifies the consumer case.

01:04In this overall market, the retail investor has emerged more and more as a pillar in their

01:08participation of it. When you look at something like crypto falling below 90,000, it's back above

01:13that level at a moment. I'm not necessarily talking about your call in crypto itself. But when you look

01:17at that, does it say something about broader retail participation that maybe they get margin calls,

01:21they have to sell out other things? Does it in general just make this a more vulnerable market?

01:26I think what's likely happened in the last few weeks is there's been sort of a reassessment of

01:32whether all the catalysts that have supported the markets are going to continue. There's been a bit

01:36of a reassessment on the strength of the AI momentum, a reassessment of whether the Fed is going to cut

01:40interest rates or not. And just a little bit of a look around. Look, if you look at the MAC 7,

01:45you know, Shiller PE, it is at 74 times or something like that. So I think there's been a bit of a

01:51pause in that. But Danny, I go back to that my own personal survey of the audience is because most

01:57people don't actually think we're in the AI bubble. I think these pullbacks will be bought. And what is

02:03a step back, I think, from the retail investors, I would assume will be that buy the dip moment into

02:08your end.