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The Fed Rescues Asset Prices (Again)…

Plus, NVDA, DIS, FOX and the Outlook for Energy Stocks

Selected video content from @76research

Don’t Fight the Fed

After an early August swoon, markets recovered sharply as Fed Chair Jerome Powell confirmed at Jackson Hole that “the time has come” to start cutting interest rates, even as the most recent inflation readings remain well above target levels. Investors across almost all asset classes are benefiting as the Fed once again comes to their aid.

Rate Cuts Ahead

The AI Opportunity Set

Trish and Rob discuss the various options available to investors who are looking for alternatives to play AI beyond NVDA and its “hyperscaler” customers, which dominate stock market indices. They discuss Model Portfolio holding Digital Realty (DLR) as an AI beneficiary that involves potentially less valuation risk.  

Diversifying Your Tech Exposure

Energy Sector Outlook

Presidential candidates Kamala Harris and Donald Trump have vastly different perspectives on energy policy. Trump wants to increase oil and gas production and bring fossil fuel prices down, while Harris prioritizes decarbonization. Yet energy stocks have fared extremely well under Biden as prices rose. Trish and Rob discuss the potential impact of the election on energy stocks as well as emerging questions related to the push for Electric Vehicles (EVs).

Fossil Fuels and EVs

Unrealized Gains

Trish and Rob offer their views on a policy proposal supported by the Harris-Walz campaign to tax unrealized capital gains. Advisors to the campaign try to sell the idea that it’s as harmless as residential property taxes, but there are significant drawbacks and risks that need to be fully understood.

A Dangerous Tax Proposal

Feds Censored Meta

Trish and Rob discuss the letter sent by Mark Zuckerberg, CEO of Meta Platforms (META), to members of Congress detailing the pressure and censorship that Facebook has been subjected to by the Biden Administration. The letter describes specific incidences of interference by the FBI and raises major questions as to how Big Tech platforms will be regulated, contained and maybe even destroyed by the federal government.  

Zuck’s Letter to Congress

Terminal Decline

Traditional corporate media faces multiple challenges, including political and social pressure to produce content that is often uninteresting to audiences. Meanwhile, streaming technology represents a continuously growing competitive threat as traditional systems are no longer required to produce and deliver content. Trish and Rob analyze a recent controversy at Fox News as a case study.  

Can Old Media Survive?

Is Disney a Short?

Disney (DIS) shares are currently trading around $90 and are now down around 25% after activist investor Nelson Peltz lost his proxy battle just a few months ago. DIS is in fact down more than 50% from 2021 highs, with many investors now questioning the value of the core theme park business after years of aggressive price hikes. Meanwhile, DIS continues to alienate core audiences with "woke" entertainment content that pushes tedious political narratives at the expense of creativity.

Disney’s Demise

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