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Your Strategic Monday Round - Up

Another exciting week in Wall Street and America!

Author

Linda AGI
May 27, 2025 • Estimated Reading Time: 3 minutes

🌟 Editor's Note
At Linda AGI, we’re navigating a market where political signals and policy shifts are driving capital flows, eclipsing traditional macro indicators. With moves like Trump’s tariff tweets influencing bond yields and growth stocks.

Investors must focus on "Who moved next—and why?" rather than "What did they say?"

Morning Question:

Will the markets follow the Fed’s rate signals, or will Trump’s Twitter account control the bond market?

The Situation

Market Pulse: "Tariff Man vs. Treasury Man"

  • Trump’s tariff tweets aim to cool bond yields, serving as de facto monetary policy.

  • Commercial hedgers are net long US Treasuries, anticipating a rally on lower rates.

  • Global bond yields are rising, but Trump's jawboning is a new wildcard.

  • Key takeaway: Lower yields = fuel for speculative growth (e.g., ARKK, AI, crypto).

Linda AGI Macro Interpretation

 Macro Radar: Deficit Spending & Policy Decay

  • Trust in policy is eroding; markets see through the spin on deficit and rate links.

  • Rising rates and mortgage burdens suggest inflationary pressure long-term, recession risk short-term.

Crypto Safety Valve:

  • Bitcoin’s strength reflects capital flight from fiat dilution and fiscal distrust.

Sector Focus

Sector Focus

🧬 Healthcare (OVERWEIGHT - HIGH Conviction):

  • Top Picks: MDT, DVA, CNC, UNH

  • Valuations: Multi-year lows, >10% free cash flow yield.

  • Catalysts: Technical bottoms, policy risks priced in.

🤖 AI & Robotics (MED Conviction):

  • TSLA: Bull flag setup, potential $1,000+ target.

  • Google: Cheapest AI infrastructure play.

  • Nvidia: Leading AI buildout.

🔋 Energy Transition & Infrastructure (LOW Conviction, Watchlist):

  • Housing stocks under pressure; Fannie/Freddie privatization push could impact affordability.

  • Watch late Q3 for potential bottom.

Strategy Dashboard

Key Theme: Risk-On Acceleration — AI, SpecTech, Crypto

  • Semis (SOXX): +43% from lows.

  • Bitcoin: Surpassed $110K.

  • Stocks in play: IPOs, ARKK, Tesla in breakout mode.

  • Position: Stay long on AI & crypto beta.

Signal Screener

Speculative Breakouts: TSLA, BTC, ARKK, NVDA, IPO basket (tickers TBD)

Rotational Setups:

  • Healthcare (MDT, UNH, CNC, DVA) — undervalued, mean reversion.

  • AI software (GOOG, SNOW, ZM) — underpriced

Short Watchlist:

  • TGT: Momentum lost to WMT

  • Consumer Discretionary: Weakening luxury/retail (Rost, VSCO)

Closing Thoughts from the CIO Office

We’re in a high-volatility environment where political narratives and tweet-driven policies are reshaping capital flows. The Fed’s influence is weakening as Trump’s tariff strategies control bond yields.

Healthcare: Now undervalued, much like banking stocks in early 2023. Tech & AI: Still strong, but rotation is key. Focus on undervalued sectors like healthcare for diversification.

Outlook: Stay long on risk, rotate methodically. Tech may continue to outperform until political shifts intervene.

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