What Big Money Is Doing While Everyone Else Is Guessing

In this week's Stansberry Investor Hour, Dan welcomes Pete Carmasino back to the show. Pete is the chief market strategist at our corporate affiliate Chaikin Analytics. He's also editor of the Chaikin PowerTactics and Chaikin Power Portfolio newsletters.

Pete kicks things off by discussing the current trends he's seeing. He says that you can't focus on just one area because there are many moving parts that shape the market, including other investors. The goal, he states, is to react to the movements, not predict where things are headed. Predictions can be wrong, and folks who don't react wind up missing out on new opportunities. Pete then shares his investing process. He understands that sectors rotate, and when he sees a shift from one sector to another, he follows the signal on where to start moving money. He also looks at fundamentals and technicals to determine whether the stocks he's looking at are good buys at the moment. And he shares his thoughts on the Strait of Hormuz tension and how things might play out. (0:00)

Next, Pete shares his thoughts on the energy crisis. He says the root cause is less of a supply issue and more of a distribution problem. He believes that properly equipping refineries will encourage miners to produce more oil. According to him, if the supply can increase while conflict tensions decrease, we can have an equilibrium where consumers are comfortable with gas prices and miners are content to continue drilling. Then, he talks about the producers that he finds most promising in several different sectors. (17:05)

Finally, Pete explains how his portfolio works. Using a "top-down analysis," he looks at themes throughout the year to find the best names in the strongest market sectors. He then shifts to the market corrections we've seen since the sell-off from last year's "Liberation Day." But he notes that the big names in the Magnificent Seven didn't recover with the rest of the broader market last November. And that implies that the baton could be getting passed from tech to energy. So he adjusted his portfolio to prepare for a sector rotation. He then wraps things up by stressing the importance of handling risk management in your portfolio. (35:48)