By coinnews 
00:00 Speaker A
Over 90 minutes into the trading day. And right now, yeah, we’re mixed. After a three-day winning streak as ongoing trade tensions weigh on investors. They’re top in investors minds right now. Joining me now, we’ve got Adam Coons, Winthrop Capital, Chief Investment Officer. Adam, you say that investors are trading too much on emotion, perhaps listening to a lot of Mariah Carey at the top of the playlist. What should investors be focusing on instead, in your view?
00:42 Adam Coons
Well, I think first and foremost, if you are having visceral emotional reactions to, you know, stocks being down in particular, just kind of what markets are doing. It’s probably time to reassess your, you know, kind of risk appetite. And you know, did you get caught up in the FOMO trade over the last couple of years and and may have come into this year just a little bit, you know, I said with too much risk in the portfolio? Because I can say from our perspective, you know, we did come in this year a little bit more defensive than usual. And so when, you know, we’re in that opportunity, we see this as a period where we can kind of look around and find spots that we didn’t think we were going to get a second chance at. And so that’s what this should be. You know, the world doesn’t come to an end very often. And so I think at the end of the day, fundamentally, there hasn’t been enough that’s changed. There are some things that could change, but I think right now we need to use the information we have, the earnings that are coming out for some of these companies, like you just led on with Alphabet do look good. And so I think there’s some fear about the future, the fear about a potential recession. But until something fundamentally changes, those things should not be an investor’s base case.
03:09 Speaker A
And so with that in mind, as you’re thinking and hearing through some of the CEO commentary and executive commentary over the course of this earning season, how is that governing and the long-term outlook governing where it seems like a right opportunity to pick and choose those areas to perhaps set some longer-term positions?
03:48 Adam Coons
Yeah, I mean, look, there are some obvious spots where depending on where tariffs go, in particular, you know, with China and the exposure there. Some companies are more exposed than others, sure. But I think you also need to look at, okay, the mobility of those companies. You’ve already seen that Apple’s come out and said they’re going to shift production of iPhones that are coming here to the US to other places, in particular India. So look, I think that a lot of this, regardless of how it ends up from the tariff standpoint, still is going to be short term because you better believe these companies with the amount of market cap and cash that they have are going to find a way to mitigate this. And so we might have more volatility this year, a little bit more uncertainty, but like you just hit on as an investor, you should be looking long term. And so those high quality companies, your Nvidias, your Apples, Microsoft, you know, the business models haven’t changed. The things that were working will not change because of this. Will there need to be maybe a deviation of how they get to the consumer potentially? But overall, those high quality companies are still high quality companies. I think that’s where you need to look. It’s the companies that really came into this that were poor quality, poor quality earning companies that may not get through this very well and there may be an increase in defaults and those kind of companies. But once again, I think investors should be really focused on those high quality companies.