Name: Don't Go 'Bottom-Fishing' for Stocks, Harvey Says
Uploaded: 2026-02-04T02:55:40.000Z
Duration: 4 min 12 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Adverbs of manner

So what do you do in the meantime during this financial eternity where suddenly there's a question about whether Main street gets some of the stimulus.

And frankly, Wall street is struggling with questions around artificial intelligence.

one of the things we say, we want you to go up in quality.

So higher quality companies, good balance sheets, good stewards of capital, in addition to that, we don't think it's the time to go bottom fishing.

Chart has to look good because a lot of these companies with positive price momentum, they do have better fundamentals.

So we want to marry higher quality companies with companies that the market's already rewarding, be it no matter what sector you're looking at.

Is big tech still high quality at these valuations?

And I think one of the really interesting things is yesterday Oracle had a bond issuance.

I think they had a convert issuance that went quite well.

There's been a lot of concern about hyperscaler, hyperscaler funding.

And I think that put a lot of concerns, a lot of fears to rest.

Are you hopeful for the numbers we get from Alphabet and Amazon that this just continues?

I think the numbers in earnings season have been pretty good.

And you still have a lot of idiosyncratic risk.

But the one thing I'm not seeing is not seeing this acceleration.

And if you need an acceleration in the economy, you need an acceleration in earnings to really go down to that secondary and tertiary bucket.

One thing we talked about is how much the tech trade has just changed.

Hardware versus software within Max 7 as well.

I'm not sure we can even talk about Max7 as a group of stocks.

It just looks so different from matter to Microsoft and Apple has no place in that group.

I don't know if it has no place, but you're right.

The phrase that I hate and phrase a lot of people use coming into this year is it's a stock pickers market.

Every year it is always a stock pickers market.

I don't, I don't understand that phrase, but I think it is applicable here.

Because idiosyncratic risk is getting bigger.

You're later in the cycle because the economy is not accelerating because earnings are not accelerating.

You really need a good idiosyncratic or stock specific.

Can I just pick up on that phrase later in the cycle?

So credit Spreads and you probably have seen this hit hit a low we haven't seen since Astri watched.

The amount of issuance that we're seeing is, is low.

These are the things you see later in the cycle.

I do think the cycle will continue because I do think there's a lot of accommodation in the system and I don't think the monetary policy accommodation is done.

So what kind of returns are you expecting this year?

We've seen some projections for 7,800, 8,000.

This idea that you can have, I continue to fuel this even amid some of the wobbles that we've seen recently.

Do you think that that's fair or do you think that it's going to be more of a churn to year end?

Our expectations for high single digits, it's 74, 74, 50.

And what we think is by the end of the year you're going to start looking to 27 and now you're going to start looking at a situation where it's beginning to decelerate.

That said, with so much accommodation on the table, with the Trump administration pushing things in front of midterms, we could have a little bit of a melt up or a population summertime fall, I think.

So this is sort of the bipolar aspect of a lot of the conversations we have.

Some people say because of the midterm elections you're going to get a melt up.

Other people say you could get a meltdown in certain names.

I'm thinking in particular of artificial intelligence related energy types of projects, especially with the affordability crisis and how much you could crack down.

There's been questions around the bank's trade and what we've seen there.

So what we, what we're saying is I think in the first half you're going to have bouts of risk aversion.

We've already seen a couple of bouts of risk aversion.

I think people are really, really under coming into the year.

Underappreciate the macro and some of the macro concerns, underlying fundamentals are still good.

We would buy any sort of 5%, 5% plus pullback.

I think we do get some of that right because expectations are so high.

But at the end of the day, we think equities do go higher later in the year and there is a possibility for a sharp pop higher sometime, maybe in the summertime, maybe in the fall.

Subtitles ListPlay Video

Don't Go 'Bottom-Fishing' for Stocks, Harvey Says

sort

struggle

phrase

aspect