Sean Brodrick – Sitting Tight Through Recent Volatility, Spotting Opportunities In Home Builders, Tech, Oil And Nat Gas, and Uranium Stocks

The KE Report

Sean Brodrick, Editor of Wealth Megatrends and contributing analyst to Weiss Ratings Daily, joins us to review how he is sitting tight through the recent downward pressure and volatility within US Equities, but also seeing value building in home builders, tech stocks, oil and natural gas stocks, and uranium stocks.

We start off having Sean outline some of the drivers of the recent market weakness. He points out that a number of earnings reports have shown that the ROI has not been there for all the investment into artificial intelligence, and that many US companies are guiding for weakening earnings moving forward. Then there is all of the weakness from the Japanese Yen carry trade unwinding. Another layer of market uncertainty and volatility is coming from the political uncertainty around US elections this November, and which sectors would stand to benefit based on which administration is in charge. Then there are concerns about weakening macroeconomic data points that have accelerated into more fears of an imminent recession; which Sean feels is getting a bit overblown. Then one more big factor is the markets perceptions that the Fed is, once again, behind the curve with it’s monetary policies, and have stayed tight for too long.

Sean sees in the value in interest rate sensitive sectors like the home builder stocks, REITs, and auto-related stocks, as well as some of the tech and semiconductor companies that are now getting a bit oversold. With regards to the commodities sector, he continues to hold tight in the oil and nat gas stocks, as well as the uranium stocks, expecting both to still do well in the medium to longer-term, despite their recent corrective moves lower. He sees global growth being robust enough to underpin more need for electricity from natural gas plants and nuclear power plants, and feels the recent corrections in both nat gas and uranium, fly in the face of the fundamental factors at play.

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