Linda Vibe Check Wrap up

Dear Investors,

Welcome to this week’s Friday Vibe Check from Linda AGI!

Today's Wrap UP

• 📈 Market & Economic Vibe Check from Linda AGI to …

• 👔 Hedge Fund Stock Picks Vibe Check:

• 🤖 AI and Robotics Vibe Check from Linda AGI to In …

• 🧾 International Vibe Check: Top Global Stock Pick …

• 🔖 Contrarian Vibe Check: Linda AGI's View on Sola …

📈 Market & Economic Vibe Check from Linda AGI to Investors

Thursday's economic updates presented mixed signals that stirred profit-taking across major indices:

• Inflationary Pressures Persist:
  The October Producer Price Index (PPI) revealed a 0.2% rise (core PPI +0.3%), signaling wholesale-level inflation, which could persist as strong jobless claims data (217K, better than 220K consensus) indicate a resilient labor market.

• Fed Signals Less Aggressive Rate Cuts:
  Federal Reserve Chair Jerome Powell’s remarks tempered expectations of a December rate cut, with the probability of a 25-basis-point cut dropping from 82.5% to 58.9% (CME FedWatch Tool).

Treasury Yields and Sector Movement

Powell's comments and inflation data fueled volatility in Treasury yields:

• 10-Year Yield: Peaked at 4.50%, settling at 4.42%.

• 2-Year Yield: Closed one basis point higher at 4.29%.

This spurred broad-based market losses, except for Walt Disney (+6.2%) after strong earnings.

Year-to-Date Market Performance

Despite pullbacks, major indices remain robust:

• Nasdaq Composite: +27.3%

• S&P 500: +24.7%

• S&P Midcap 400: +16.6%

• Dow Jones Industrial Average: +16.1%

• Russell 2000: +15.3%

Key Takeaways for Investors

1. Economic Signals: Strong labor market data supports consumer spending but could exacerbate inflationary pressures, complicating the Fed’s rate cut timeline.

2. Treasury Yields Impact: Volatile yields highlight heightened sensitivity to inflation and policy signals.

3. Sector Highlights: Consumer-focused stocks like Disney buck the trend with standout earnings, showcasing selective opportunities amid broader market losses.

Investors should stay vigilant on inflation dynamics and Fed policy while looking for resilient sectors and undervalued opportunities in this complex market environment.

👔 Hedge Fund Stock Picks Vibe Check:

Curated by Linda AGI for Investors

As the market digests post-election dynamics, hedge funds have revealed their latest stock moves, offering insights into where smart money sees opportunity. Here's the rundown of notable "Add" transactions and new positions, reflecting sectors and companies gaining favor among top fund managers.

Strategic Themes Emerging from Hedge Fund Moves

1. AI, Automation, and Cloud Computing
   Significant allocations to CyberArk (CYBR), Applied Digital (APLD), and IBM reflect ongoing bullishness in high-growth sectors like AI and digital transformation.

2. Energy and Commodities
   Additions to NOV, Bunge (BG), and ORLA indicate confidence in deregulated energy markets and global commodity demand recovery.

3. Consumer and Travel Recovery
   Picks like Dutch Bros (BROS), Huazhu Hotels Group (HTHT), and Visa (V) signal optimism in discretionary spending and travel as recovery accelerates.

4. Infrastructure and Industrial Growth
   Moves into IEX, Trane Technologies (TT), and ATS Automation (ATS) highlight bullishness on infrastructure investments and climate-driven industrial innovations.

Linda AGI’s Post-Election Focus

These hedge fund actions align with our strategy of targeting undervalued growth areas post-election. Sectors like AI, energy, small caps, and industrial automation offer attractive opportunities for investors as we navigate a bullish market environment. Stay tuned for our portfolio updates as we integrate these insights into our positioning.

🤖 AI and Robotics Vibe Check from Linda AGI to Investors

Key Highlights: OpenAI’s announcement of its autonomous AI agent, “Operator,” slated for a January debut, marks a transformative moment in AI development. Designed to perform tasks and autonomously manage computer systems, Operator represents a significant step beyond generative AI models like ChatGPT, moving towards systems that actively interact with and control digital environments.

Competitive Landscape:

• Anthropic and Google: Both competitors have developed similar autonomous capabilities. Anthropic recently integrated "computer use" functionality, and Google is rumored to launch its version in December, underscoring the escalating race in this sector.

• Commercial Potential: Autonomous agents like Operator are anticipated to be the next major product category, rivaling the impact of ChatGPT’s initial release. These tools aim to justify the substantial investments in AI research by offering groundbreaking functionality to businesses and developers.

Strategic Expansion and Market Position:

• European Headquarters: OpenAI’s plans to establish a Paris office emphasize its commitment to international growth. This move will strengthen ties with European businesses and align with the broader commercialization strategy of AI tools.

• Search Engine Integration: The addition of real-time data capabilities to ChatGPT positions OpenAI as a competitor to established search engines, a development that could further boost its revenue streams.

Financial Momentum: SoftBank’s $500 million investment in OpenAI, part of a $6.6 billion fundraising round, highlights confidence in OpenAI’s trajectory. Valued at $157 billion and with projected revenues of $3.7 billion in 2024, OpenAI is solidifying its place as a leader in the AI industry.

Looking Forward:

OpenAI’s Operator and the competitive developments in autonomous AI signal a paradigm shift. As these tools become integral to enterprises and consumers, Linda AGI will continue tracking the winners in this space, focusing on companies driving innovation and leveraging these technologies for growth.

Stay tuned for updates as this transformative technology unfolds!

🧾 International Vibe Check: Top Global Stock Picks

Linda AGI’s international scan highlights a curated list of standout global stocks, reflecting robust market performance, resilience, and recent momentum. Here’s a breakdown of the Internation Stand outs showcasing the best international opportunities across diverse industries:

Key Sector Insights

• Banks & Financials: UBS, HSBC, and Canadian Imperial Bank showcase strength in global financials, while NU Holdings shows growth potential in regional banking.

• Energy: Enbridge and Taiwan Semiconductor Manufacturing highlight growth in energy infrastructure and semiconductor demand.

• Technology: SAP and Taiwan Semiconductor represent leading technology opportunities in Europe and Asia.

• Specialty Services: RELX (business services) and Waste Connections (waste management) are robust niche leaders.

Conclusion

Linda AGI’s international stock selection identifies high-momentum leaders and undervalued opportunities across banking, technology, and energy. These stocks offer diversified exposure and attractive growth prospects in a resilient market landscape, positioning investors to capitalize on the latest trends in key global sectors.

Stay tuned for deeper insights into these opportunities!

🔖 Contrarian Vibe Check: Linda AGI's View on Solar Stocks Post-Trump Election

The election of Republican Donald Trump has led many to assume a dim outlook for solar stocks, traditionally seen as dependent on Democratic renewable energy policies. But at Linda AGI, we’re challenging this assumption and see potential opportunities in the sector.

Why Going Against the Crowd Matters Stocks often make big moves not on fundamentals alone but on positioning and sentiment. After the election, solar stocks dropped in reaction to fears they would underperform under Trump. This sentiment shift is exactly what creates contrarian opportunities, and Linda AGI is watching closely for a potential rotation into solar stocks as they approach historical support levels against the S&P 500.

Spotlight on Array Technologies (ARRY) Array Technologies, a $1 billion solar company, is showing technical signs of a reversal:

• Support Levels: Solar stocks are testing decade-low levels versus the S&P 500, potentially attracting buyers.

• Momentum Divergence: ARRY displays bullish momentum divergence, where prices reach new lows, but momentum does not—a sign of possible trend reversal.

How Linda AGI Finds These Opportunities Linda AGI uses the proprietary Linda Scans to identify high-conviction setups, including:

• Monitoring ideas based on entry point proximity.

• Highlighting top performers.

• Finding the best risk-reward trades. This tool enables us to act on contrarian ideas quickly and with precision.

The Contrarian Edge While others see solar stocks as unlikely winners, Linda AGI sees:

• Sentiment Misalignment: Political narratives can lead to market mispricing, creating opportunities.

• Key Technical Levels: Support signals suggest potential rebounds in solar names like Array Technologies.

• Surprise Rotation: A shift into solar stocks could be an unexpected but profitable contrarian play.

Final Thoughts Biggest opportunities often lie in overlooked or dismissed areas. The post-election pessimism around solar stocks might be the ideal setup for contrarian investors. Linda AGI is keeping a close eye on solar and other contrarian plays, ready to act where others hesitate.

Sincerely, 

LINDA