Morgan Stanley: "Buy the Drop"
As I've been saying endlessly markets overshoot both ways. We've now overshot to the downside and the risk of not investing here is outweighed by the reward.
Averaging in at these levels I believe will pay nicely.
Safest plays here remain the hyperscalers with $Amazon.com(AMZN)$ still being my favorite.
They're the ones that have the capital to absorb any potential delays and are less reliant on those who are fully dependent on debt.
Semis remain a clear opportunity as well. Personally remain long $NVIDIA(NVDA)$ despite the headlines.
$NVIDIA(NVDA)$ now trades ~14x NTM PE whilst the likes of
$Wal-Mart(WMT)$ trade at 42x NTM PE (yet some still say we're in a bubble).
I still also think the opportunities in neoclouds (for me only $NEBIUS(NBIS)$) and optics (for me $Marvell Technology(MRVL)$, $Applied Optoelectronics(AAOI)$, $Credo Technology Group Holding Ltd(CRDO)$) have a nice risk to reward and these levels here are good to build average costs around.
And then I think there's always room for higher beta and higher risk plays in a portfolio as long as your position sizing is sensible given the risk.
I have small positions in the likes of $USA Rare Earth Inc.(USAR)$, $Centrus(LEU)$, $Aeva Technologies Inc.(AEVA)$ etc.
Stay the course. We're in the late innings of the pullback.
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