00:00 Speaker A
The US stock market currently ticking higher, but with the latest whipsaw moves following President Trump’s trade policy, our next guest says, there are some bearish signals and reasons to look to the value trade. Here with a few of his top picks, we got Joe Tighe, Rational Equity Fund portfolio manager. Joe, it’s great to speak with you. I know that the top pick that you’ve sent over to us is Berkshire. Lay out the bull case for Berkshire for me. Why is there still more room to run?
00:43 Joe Tighe
Yeah, thank you for having me. I’m Joe Tighe, portfolio manager of Rational Equity Armor Fund. I’m a former options market maker. I was on the floor of the CBOE trading VIX and S&P 500 options. So times like these are what I really live for, and it’s really, uh, really a joy to be able to bring this, uh, this type of strategy to light for my clients, providing upside potential with less risk. It’s really exciting times. But yeah, Berkshire Hathaway, just in times like this, just looking at the bond markets, specifically the bond market flashing major warning signs of a recession. I want to get defensive just a little bit. I still have a long-term bullish approach on the US economy and the US stocks, but in the short term, next couple quarters, just want to be defensive. Berkshire Hathaway done a great job hoarding cash. Uh, we know Warren Buffett’s management. We know what he’s been able to do over the long haul. Uh, there’s been some bargains for him to be able to look around, scoop up. He’s going to be able to use that cash very effectively as prices go lower, of course. Uh, and just looking domestically, got a very stable portfolio of stocks which are able to weather these types of storms. And while we’ve seen a pullback in the tech stocks, yes, pullback in the growth names, we’ve also saw pullback in a lot of the value names. I think those also have room to run higher. Unfortunately, I think it’d be better for the market if the growth names were going to be leading the way. I’m just a little concerned short term if, uh, you know, maybe money will be put towards the value names because there’s not that, uh, not that growth catalyst that people can see just yet. Now, hopefully, hopefully that happens. Hopefully it’s something that I don’t know about happens, either a Fed, uh, a Fed doing something, uh, maybe a taxes, deregulation doing something, something to spark the market to get to that next level higher. I don’t just have my finger on what that is. I’m not aware of what that is. In light of my, uh, lack of knowledge of what the next step is, I’d be looking for defensive areas. Uh, Berkshire Hathaway is, uh, of course, the top, uh, top in class.