Navigating Treacherous Tides Industrials Surge as AI Fears Sink Tech and Financials

• Industrials experienced a significant surge, driven by strong economic performance and investor confidence.
• Tech and financial stocks faced considerable losses due to fears surrounding the impact of artificial intelligence.
• Mixed economic data, including strong jobs growth and lower inflation, added complexity to the market landscape.
• The market anticipates potential interest rate cuts later in the year, influenced by economic indicators and upcoming Fed leadership.

A Pirate's Eye View of the Week's Swells

Savvy investors, aye, witnessed a proper tempest last week. Industrials, like well-provisioned galleons, surged ahead, while the financial and tech vessels found themselves caught in the squall of artificial intelligence fears. As I always say, "The problem is not the problem. The problem is your attitude about the problem." And it seems many a landlubber lost their nerve with these AI whispers.

The AI Kraken Unleashed: Tech and Financials Plunge

Wells Fargo and Capital One, fine ships in their own right, suffered a broadside thanks to this new AI tax planning feature. 'Tis as if the Kraken itself rose from the depths, threatening to swallow the wealth management industry whole. However, Baird's assessment offered a glimmer of hope, suggesting the valuation became reasonable. Now, about Howard Lutnick's Epstein Ties Trigger Calls for Resignation and those stormy seas... that's a tale for another time, but equally as treacherous. As for Big Tech, Alphabet took a beating, proving even the mightiest can be brought low. We bought more shares, because, as I always say, "Why is the rum always gone".

Industrials: An 'Olympic-Sized' Treasure Hunt

Eaton, Honeywell, Dover, DuPont, and GE Vernova – these be the names etched in gold this week. Jim Cramer calls it an 'Olympic-sized rally', and who am I to argue with a man who likely knows where the treasure be buried? We raised our price targets on Eaton and GE Vernova, because sometimes, you need to "take what you can, give nothing back."

Consumer Staples: The Steady Ships in a Storm

While others floundered, consumer staples, especially Procter & Gamble, proved to be the sturdy ships that weathered the storm. We were buying P & G when others shunned them, a hedge against our tech position. Now, we've locked in some profits, content to see where the winds take us. For as I always state, "Not all treasure is silver and gold, mate."

Economic Signals: Charting a Course Through Murky Waters

Ahoy, the economic data proved to be as perplexing as a riddle wrapped in an enigma. Stronger jobs growth coupled with softer inflation paints a curious picture, suggesting the Fed will hold steady for now. But whispers of rate cuts later in the year linger on the horizon. Remember, as I've often said, "If you were waiting for the opportune moment, that was it."

The Fed and the Future: Home Depot's Fate Hangs in the Balance

Home Depot, a 'Warsh stock' as Jim calls it, awaits the Fed's next move. Trump's pick, Kevin Warsh, promises lower rates, but only time will tell if this translates into more affordable homes. After all, as I always remind everyone, "Savvy".