In a recent Techcheck discussion, James Cakmak from Clockwise expressed a long-term positive outlook for Microsoft and Apple, suggesting that recent DeepSeek news could benefit them despite current market downturns. He also highlighted a cautious approach towards Amazon and a pivot towards smaller-cap stocks, emphasizing the need for investors to rethink traditional risk perceptions in light of market volatility.
In a recent discussion on Techcheck, James Cakmak from Clockwise shared insights on the current market positions of major tech companies, particularly Microsoft and Apple. Despite a recent downturn, Cakmak expressed a long-term positive outlook for both companies, suggesting that the recent DeepSeek news could be beneficial for them. He indicated that while they are currently underweight in these stocks relative to the index, they are prepared to take advantage of any pullbacks in the market.
Cakmak also addressed Amazon’s performance, noting that while he has been bullish on the stock for a long time, he is not looking to increase his position at this time. He mentioned that they have been trimming their holdings as the stock has risen, citing concerns about cloud growth as a factor in their decision-making. He emphasized that the risk-reward profile for Amazon is less attractive compared to other investment opportunities.
The conversation shifted towards smaller-cap stocks, with Cakmak highlighting a pivot away from semiconductor suppliers. He mentioned that they have significantly reduced their position in Nvidia but remain optimistic about the infrastructure build-out, favoring companies like Taiwan Semiconductor and Constellation Energy. These stocks have shown strong performance, with Constellation Energy up 36% this year, contrasting sharply with the broader utility sector.
Cakmak also discussed the cryptocurrency market, expressing a bullish stance on platforms like Robinhood and Coinbase. He noted that while their ETF has limited flexibility in directly purchasing cryptocurrencies, they see potential for earnings growth and multiple expansions in these companies. He emphasized the importance of maintaining exposure to crypto, especially given the market’s volatility.
Finally, Cakmak urged investors to reconsider their perceptions of risk and beta in their portfolios. He pointed out that some stocks, like Constellation Energy, exhibit behavior more akin to semiconductor stocks despite having a lower beta. This observation highlights the need for investors to rethink traditional assumptions about risk in tech investments, especially in light of recent market fluctuations. Cakmak’s insights suggest a strategic approach to navigating the current market landscape, focusing on long-term growth while being mindful of short-term volatility.