May. 9 at 2:27 PM
Iran is in dire economic shape with oil reserves filling up, evaporating oil revenue, shortages of food and key supplies, runaway inflation, and a worthless Rial. Therefore, I assign a high probability to a peace deal being reached sooner rather than later, and the Strait of Hormuz reopening fully. With that, I expect (temporary) profit-taking in AI-concentrated stocks and a rotation into these sectors:
■ Transportation & Leisure: Airlines, Cruise Lines, and Logistics & Trucking.
■ Consumer Discretionary & Retail: Big Box Retailers and Restaurants.
■ Interest Rate Sensitive Sectors: Growth Tech (beyond AI), particularly Software and Biotech, REITs, regional banks, and precious metals.
■ Global Markets & Manufacturing: Chemicals tied to oil, and countries with high dependence on imported energy.
$SPY $QQQ $JETS $KRE $RTH