Matt Tuttle's Bull Cases in Metals & MU Amid Volatility

0:00But let's now get some insights on the news, shaping the overall markets and for that to be welcome in Matthew Tuttle, CEO and CIO of Tuttle Capital Management. So first and foremost, thank you so much for being with us on this Friday. As we assess these overall markets, we know that higher fuel, right now, oil is really fueling these inflationary fears and of course could change this year's rate path. And so what signs at this point would tell you that stagflation, that risk could only be temporary perhaps? We need this ward end, you know, as long as this is going on, oil is going to stay elevated. That's going to keep pressure on rates to stay elevated. That's going to tie the Fed's hands. And that's going to get people freaked out about the possibility of stagflation, which makes sense. I mean, a lot of people went around back when we had it. It's not a great place to be. That's going to keep pressure on the market. You saw the S&P break the 200 day moving average yesterday. So you know, we really just need this to end.

1:00I mean, absolutely. So as long as this ward has continued, do you do expect something to limit it upside for the market, I think, which is a reasonable consensus estimate right now? But so what would be the clear catalyst that could change that view and allows equities to break higher? Or are you just saying it's really the end of the war? Yeah, I mean, we need oil prices to come down. You know, as long as oil is kicking around $100 a barrel and there's the risk of some event that could bring it up even more, we're going to see pressure on equity prices. You know, we're going to have updates. I mean, we're not going to go down in a straight line, but it's hard to imagine any real meaningful upside while oil is sitting at these levels. Okay. And so you did mention that you like stocks that were strong before the war, but did sell off on some of these oil-related fears. And so what specifically does keep you more constructive on names like Freeport Mac Moran, for example, or Franco Nevada? Yeah. So we're looking at the metals.

2:00So Franco Nevada, Gold Miner, Freeport Mac, Naran Copper, both areas extremely strong before the war. You know, a lot of people got all bolded up on gold, figuring the war playbook, gold's going to rally. And it did that first day. But, you know, we tell people the obvious trade is not always the right trade. But I do think while oil is going to stay elevated while this war is going on, it's probably topped. You know, there could be an outlier event, but without that, it's probably topped. And we think you're going to see money start rotating back into the gold miners and back into some of the metals like copper, which is why we just added those two names to our Mimi EPF at the close yesterday. Okay. So to move into, of course, the Everhot tech space, you've stayed pretty bullish on some of these AI specific sectors like memory optics both before and, of course, after or hopefully after the war. So what really is holding up demand there, despite, again, the broader macro uncertainty?

3:04Yeah. So AI is not going anywhere and the spend is not going anywhere. And really one of the big bottlenecks right now is memory. So those names have continued to be strong. And optics is another area that's going to be big. That's more of the future of how AI is going to happen. And those names have stayed strong. So we'd be looking to buy those names on dips into support. You always got to be careful buying the strong stuff and an overall market weakness. Because if the market continues to sell off eventually, they're going to get everything. But, you know, those are the two favorite areas in the AI trade right now. Okay. So speaking on that same theme, micron, of course, sold off after earnings. And that could, I mean, I think many are seeing it as this major opportunity for buying perhaps at a discount. And so what is the most important part of that report or the outlook that they provided that does make that dip more attractive from here? Because I will say, I listened to the report.

4:06I talked about it all day yesterday. I mean, it was as far as a perfect report as you can really get. Yeah, I mean, it was a blowout report, which, you know, certainly we love to buy dips on blowout reports. We were thinking of maybe adding micron yesterday. We didn't. I'm looking at it again today, but it is certainly a name that I am very interested in, especially after that report. Okay. And so, given again, to go back to, I mean, just right now, the uncertainty of the timeline of these things, given that so much of your rhetoric really stands on the fact that we'll see some resolution. I mean, how do you go about the navigating the uncertainty of if this stretches on perhaps longer than feared? Yeah, I mean, you know, then you've got to look at, you know, I still think the gold names are going to end up being strong. At some point, money's going to flow there as a flight to safety. But beyond that, you've just, you've got to be careful. You know, I still like, like I said before, the optics and the memory and the support,

5:09but if this keeps dragging on and on and on and if those stagnation fears, if we start seeing more numbers showing weaker economy, higher inflation at the same time, you've got to be careful. One of the things we always tell investors is always have hedges on. And you know, now more than ever, you want to make sure you've always got something in your portfolio that's going to go up if we have significant downside. Yeah, and I think of a very reasonable estimate, but especially give it, of course, the volatility we've seen continue on this week as this war does continue on. So we so appreciate it, Matthew Tuttle, CEO and CIO of Tuttle Capital Management. Thanks so much for joining us this Friday.