George Seay, Founder and Chairman of Annandale Capital, shares where you can invest outside of the tech sector.
Transcript:
Caroline Woods: So if you’re buying stocks what are you buying right now. Because I understand there are still some unloved areas of the market that you like.
George Seay: Yeah I think that that’s the key thing that people who are trying to put fresh money in the market need to really think hard about, if you look at Microsoft, their earnings were just spectacular. But the stock’s kind of planed out since that happened. And then Google is kind of planed out after a big run right after earnings as well. Nvidia is kind of seems to be kind of capping out too. So when you talk about the Mag, 7 or AI stocks or things that have been the most rampant with speculation in hot money coming in, I think it’s kind of a tough time to get into them until the run up to the next earnings season in Q3. So I’d be looking at some things and I’d say over the next two to three months, not necessarily right now. That will be victims of tax loss selling and that are significantly out of favor currently in the market. And I would put in that category, UnitedHealthcare, which has had all sorts of trouble this year and is down about 50% but is a blue chip gigantic mega stock. And I would also point people to UPS, which is trading at a very small price to earnings ratio and has a huge dividend and is a great franchise that’s really having a hard time right now. And I’d also point people to oil and gas stocks. They are again tremendously out of favor. Commodity prices have come off significantly with the rush of peace talks and with the Saudis and OPEC, plus pumping a whole lot of supply into the marketplace. And you can pick up, especially upstream natural gas stocks at a time when LNG and I demand for data centers is going to push demand in natural gas tremendously for pretty, pretty cheap prices. But I would have a 2 to four month perspective on that. I would take my time and be patient about buying in, because tax loss selling season is about to probably drive some of these even lower in the near term.
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