U.S. stocks (^DJI,^GSPC, ^IXIC) gained after the November jobs report showed a strong picture of the U.S. economy. Now markets are pricing in about an 88% chance of a 25 basis-point rate cut at the December Fed meeting. Key Advisors Wealth Management CEO and co-founder Eddie Ghabour joins Catalysts Co-Hosts Seana Smith and Madison Mills to discuss how investors should position their portfolios with the Fed’s next moves in mind.
Ghabour is paying special attention to two Magnificent Seven stocks: Meta (META) and Nvidia (NVDA).
“We’re actually buying cyclicals. We’ve increased small caps. We’ve increased our exposure to Meta and Nvidia,” Ghabour tells Yahoo Finance. While he is buying Nvidia now, Ghabour goes on to say that once things reach a peak, it will be one of the first names he sells. “When we start to see a top or what we believe is a top, we are going to sell the most aggressive holdings in the most highly owned holdings. We love Nvidia as a company and as a stock, but that will be one of the first things we cut because that will take a very big hit in our opinion.”
For more expert insight and the latest market action, click here to watch this full episode of Catalysts.
This post was written by Cheyenne Reid.