00:00Cameron Dawson of New Edge Wealth Writing. If you look through the narrative the economic data the breath. There are
00:05plenty of things to like about this market.
00:08Cameron joins us now for more. Cameron good morning. Good morning. That's a big question. What is there to like
00:12right now. Yeah I think it's two main things.
00:15One is leadership. There has been a very cyclical pro risk on leadership that we've seen in this rally which
00:21of course is encouraging things like equal
00:23weight discretionary versus staples outperforming transports outperforming. You also like positioning. And we think that
00:29this has been the key reason why we've seen such a powerful rally. You went from being deeply underweight just
00:35a couple weeks ago to very rapidly back up to
00:38neutral. And that kind of buying power has really been the fuel for why we've seen markets move up so
00:44far so fast. I think some of that is now behind
00:47us which means we're far more sensitive to incoming news meaning we need good news in the Middle East in
00:52order for this to continue. But it certainly was a
00:55very powerful rally just because people got so very underweight back in the swoon in March. It's hard to say
01:01we've got good news over the
01:01weekend. We came into this week at all time highs and a massive powerful rally and we're down just zero
01:07point four percent on the S&P. What is the
01:10signal you take from the reaction this morning. Yeah it is very surprising that you're seeing such a muted reaction
01:15after you saw markets get so
01:17very overbought. So we think that there is still a lot of hope and optimism in this market and the
01:23base on the fact that you're still
01:25trading at 20 times forward earnings with 17 percent earnings growth priced in for this year. But I think it's
01:31important to note so much of
01:33that earnings growth is coming from an incredibly small cohort of names in the first quarter of this year. Fifty
01:39percent of the earnings growth is coming from just two
01:42names. Micron and Nvidia which is absolutely incredible. And if you roll that forward to the entirety of 2026 an
01:50entire third of the
01:51earnings growth is coming from just those two names. So this is really a message about idiosyncratic growth coming from
01:57this market not
01:58necessarily something that's much more broad based.
Comments