AI debt Fears Fuel Tech Volatility: The Investment Committee's Strategy 10/16/26

Netflix

Across the shows: 4 speakers in other episodes, 3 bullish and 1 bearish calls, past 30 days

• Rob Sechan · NewEdge WealthBullish

  Netflix is incredibly well positioned; the firm added in March and sees it as a fine name to own.

  He believes Netflix is incredibly well positioned and the firm added to it in March. Subscriber news is unlikely next week, so the key will be content direction and possible acquisitions. He advises patience and sees it as a fine name to own, though it was bought a bit early.

  “I think this company is incredibly well positioned. We just, you know, we just added to it in March... I think you continue to be patient around this name. I think it's a fine name to own.”at 36:01

• Rob Sechan · NewEdge WealthBullish

  Netflix is a fine stock to own, though the fund bought it earlier than ideal.

  Rob says the fund is relatively new in Netflix and the stock is down since they bought it. He admits they should have waited for a better entry level, but he likes the company and calls it a fine name to own. He suggests the shares are worth patience.

  “I think it's a fine name to own.”at 36:26

• Malcolm Ethridge · Capital Area Planning GroupBullish

  Netflix's live-TV executive hire is a step toward pivoting away from the YouTube-threatened model.

  Malcolm is surprised by the negative market reaction. He argues the market has long wanted Netflix to shake up its model and compete with YouTube. Hiring an executive with legacy live-TV and sports background, after Netflix had already signaled a live-sports focus, answers that demand. He notes Netflix still needs cheap user-generated content like YouTube Shorts, but calls the move a step in the right direction and a willingness to pivot.

  “This is them sort of answering that question in a way. It kinda tips the hand in the direction that they're heading... this is at least them showing a step in the right direction and a willingness to pivot”at 37:08

• Kevin Simpson · Capital Wealth PlanningBullish

  Netflix's leadership shake-up is a good move; the sell-off reflects only poor timing before earnings.

  Kevin says the analyst community has soured on Netflix's existing model and wants change. He loves the leadership move. The only reason he gives for the stock falling is timing: announcing a major shakeup a few days before earnings is making the street nervous. He suggests the decline is about timing rather than the strategy.

  “I love the move. The only reason I would give for the stock being down today is the timing.”at 37:49

• Jason Snipe · Odyssey Capital AdvisorsBullish

  Netflix's ad business will be strong; it must focus on content spend, and layoffs are coming.

  Jason argues Netflix has focused heavily on profitability over the past year, away from its streaming ads. He expects the ad business to be strong. He says Netflix needs to focus on content spend despite expensive sports, and a new Squid Game sequel could be profitable. He expects a cut of about 6% of staff, around 1,000 positions, going into Tuesday's earnings.

  “So the ad business, I think, will be strong. I think they really need to focus on the content spend.”at 38:26

JPMorgan Chase & Co.

Across the shows: 8 speakers in other episodes, 8 bullish and 0 bearish calls, past 30 days

• Malcolm Ethridge · Capital Area Planning GroupBullish

  JPMorgan is undervalued on a diversified mix, and he added after a 10% selloff.

  Focusing on net interest margin for JPMorgan and other big banks misses a diversified revenue mix. The big banks can spend heavily on AI to find inefficiencies, with Bank of America expecting about $700 million in savings starting next year. Those returns should show up regardless of rates, and he added after a 10% sell-down.

  “I actually have been adding to these names. I added to all three that I just mentioned, as recently as last week once we got to a place where they were 10% sold down or more.”at 21:14

• Rob Sechan · NewEdge WealthBullish

  JPMorgan's headline earnings miss is a buying opportunity in a world-class franchise.

  Rob says the headline miss gave investors an opportunity to buy a world-class franchise with healthy trends in place. He treats the sell-off on the miss as a buying chance and sees the underlying franchise as strong.

  “the headline miss gave you an opportunity to buy a world class franchise with some healthy trends in place.”at 44:59

AbbVie

Across the shows: 3 speakers in other episodes, 3 bullish and 0 bearish calls, past 30 days

• Kevin Simpson · Capital Wealth PlanningBullish

  AbbVie is a turnaround winner: immunology drugs replaced Humira, and he is initiating a position.

  AbbVie's Humira lost patent protection but its newer drugs Skyrizi and Rinvoq and other immunology drugs grew about 24% and added roughly $8 billion over the last quarter. Neuroscience rose 20%. Add a 2.5% dividend and double-digit growth, and the stock is a good business. The position starts at 1% and will rise to 5% on pullbacks.

  “They had a super drug [Humira] that came off of patent, and they've replaced it with SKYRIZI, RINVOQ, and other immunology drugs that are up like 24%... It's also neuroscience was up 20%.”at 29:59

• Jason Snipe · Odyssey Capital AdvisorsBullish

  AbbVie is diversifying revenue and expanding margins, so it's a healthcare name to own.

  AbbVie has replaced Humira revenue with immunology, oncology and neuroscience drugs, and the stock is up about 25% this year. Companies in biopharma that diversify revenue, expand margins and grow overall are attractive. He sees an opportunity in healthcare more broadly.

  “I love what, obviously, Kev has done here with AbbVie... they have replaced that HUMIRA revenue. Right? Immunology, oncology, and neuroscience... So we like companies on the biopharma space like this that are diversifying revenue, margin expansion, and just growing the business overall.”at 31:37

Advanced Micro Devices

Across the shows: 3 speakers in other episodes, 2 bullish and 1 bearish calls, past 30 days

• Malcolm Ethridge · Capital Area Planning GroupBullish

  AMD is a great chip name to own and a safer way to play the chip trend.

  The core chip names carry most of the market share and capital, and AMD is one of them. Owning the core names is safer than chasing the speculative names with higher beta. AMD is one of the names where the real traffic is expected to flow.

  “AMD is a great chip name to own.”at 13:30

NVIDIA

Across the shows: 35 speakers in other episodes, 28 bullish and 10 bearish calls, past 30 days

• Malcolm Ethridge · Capital Area Planning GroupBullish

  NVIDIA is a great chip name to own and the biggest company in the world for a reason.

  Most capital and purchase orders in chips flow through the core names, where demand is most likely to stick even if commitments are walked back. NVIDIA is one of these core names. It is the biggest company in the world, so owning it gives a safe way to play chips rather than speculative peripheral names.

  “So you can be in the chips, but NVIDIA is a great chip name to own... we all know it's the biggest company in the world for a reason.”at 13:30

ASML Holding

Across the shows: 1 speaker in other episodes, 2 bullish and 0 bearish calls, past 30 days

• Malcolm Ethridge · Capital Area Planning GroupBullish

  ASML sits in a critical part of the chip stack and is a safer way to own the value chain.

  ASML builds the machines that all chips are made with, so every chip flows through it. It sits in a very important part of the stack. Where capital and purchase orders are most likely to stick is in these core names, so ASML is a safer way to own the chip trade than peripheral names.

  “They basically build the machines that all of the chips that get delivered flow through. So they're in a very important part of the stack.”at 15:03

Taiwan Semiconductor Manufacturing Company

Across the shows: 5 speakers in other episodes, 5 bullish and 0 bearish calls, past 30 days

• Malcolm Ethridge · Capital Area Planning GroupBullish

  TSMC is a core chip stock that the majority of chip capital must flow through.

  Most of the market share and capital in chips flow through a few core names. TSMC has the lion's share of advanced chip manufacturing for American chip designers, so its orders are very unlikely to be cancelled even if others walk back commitments. That makes it a safer way to own the chip value chain than speculative names.

  “So it's gotta flow through Taiwan Semi. They have the lion's share of the business.”at 15:03

Apple

Across the shows: 22 speakers in other episodes, 13 bullish and 7 bearish calls, past 30 days

• Rob Sechan · NewEdge WealthNeutral

  Apple is among the most expensive Magnificent Seven names; the firm holds it at neutral.

  Apple is probably one of the most expensive Mag Seven names. Its weight in indices makes it hard to be underweight, and being underweight was painful early this year. The firm owns it at neutral, having held it for a long time, and is not overweight because of the valuation.

  “...Apple is probably one of the more expensive, if not the most expensive right now of all the mag seven. We own it as a neutral.”at 19:27

Meta Platforms

Across the shows: 26 speakers in other episodes, 28 bullish and 6 bearish calls, past 30 days

• Rob Sechan · NewEdge WealthBullish

  Meta owns the most customers and is cheaper than peers, so the firm is way overweight.

  AI benefits accrue to the application layer, which gets most of its benefit from firms that own customers. Apple and Meta own more customers than anyone. Meta happens to be much cheaper than Apple, which is why the firm is way overweight. Meta reports earnings next week.

  “...the benefit doesn't accrue to the foundation. It accrues to the application layer above it... If you think about who owns more customers than anybody, Apple, Meta... Meta happens to be much cheaper. That's why we're way overweight.”at 20:17

Morgan Stanley

Across the shows: 4 speakers in other episodes, 4 bullish and 0 bearish calls, past 30 days

• Malcolm Ethridge · Capital Area Planning GroupBullish

  Morgan Stanley is undervalued on a diversified mix, and he added after a 10% selloff.

  Focusing on net interest margin for the big banks, including Morgan Stanley, misses their diversified revenue mix. AI deployments that cut costs across the big six banks, using Bank of America's roughly $700 million in expected savings as an example, should pay off over the long term regardless of rates. He added after a 10% sell-down.

  “I actually have been adding to these names. I added to all three that I just mentioned, as recently as last week once we got to a place where they were 10% sold down or more.”at 21:14

The Goldman Sachs Group

Across the shows: 6 speakers in other episodes, 5 bullish and 2 bearish calls, past 30 days

• Malcolm Ethridge · Capital Area Planning GroupBullish

  Goldman Sachs is undervalued on a diversified mix, and he added after a 10% selloff.

  The market focuses too much on net interest margin for the big banks, and it misses their diversified revenue mix. Bank of America expects about $700 million of AI savings starting next year from about 130 projects. Big banks can fund such AI projects over five years, creating a revenue opportunity regardless of rates, so he added after a 10% sell-down.

  “I actually have been adding to these names. I added to all three that I just mentioned, as recently as last week once we got to a place where they were 10% sold down or more.”at 21:14

Blackstone

• Jason Snipe · Odyssey Capital AdvisorsBullish

  Blackstone's scale and diversified revenue make it better positioned than peers; he owns it.

  He owns Blackstone, which has about $1.35 trillion in AUM, so scale matters. Its revenue is diversified beyond AI and data centers. He believes it is better positioned than smaller peers despite private credit redemption pressure.

  “Blackstone's at 1,350,000,000,000 in terms of AUM. So, scale is a real deal there... I do like both Blackstone and Apollo in this sense that, they do have very diversified revenue streams in this space.”at 24:52

Apollo Global Management

Across the shows: 1 speaker in other episodes, 0 bullish and 1 bearish calls, past 30 days

• Jason Snipe · Odyssey Capital AdvisorsBullish

  Apollo's diversified revenue, including insurance, makes it better positioned than peers; he owns it.

  He owns Apollo and sees it as well positioned because of scale and a rich insurance business that diversifies it beyond AI and data center exposure. He thinks these two are better placed than others in the space.

  “For Apollo as an example, they have a very rich insurance business in the theme... For these particular two, I think they're better positioned because of their scale than some of the others in the space.”at 24:52

ServiceNow

Across the shows: 1 speaker in other episodes, 1 bullish and 0 bearish calls, past 30 days

• Malcolm Ethridge · Capital Area Planning GroupBullish

  ServiceNow is worth buying: its agentic governance push and rating upgrades show it is undervalued.

  Malcolm is encouraged by ServiceNow leaning into agentic governance with its new AI passport tool. The company has also received rating upgrades and price target increases. He says he is glad he is not alone in saying the market is missing something, since Bill McDermott is also making that case. He is buying the stock today.

  “I'm encouraged by the way this company is leaning into agentic governance with the new AI passport tool.”at 44:41

Eaton

• Jason Snipe · Odyssey Capital AdvisorsBullish

  Eaton is attractive; its order growth of 40% is strong.

  Jason points to Eaton's order growth of 40% as the reason he likes the stock. Fast order growth at a large electrical equipment maker suggests strong demand. The argument is brief and does not explain the drivers of the orders.

  “Eaton, order growth is up 40%. I like this one here.”at 45:08

SentinelOne

• Kevin Simpson · Capital Wealth PlanningBullish

  Today's cybersecurity pullback is a chance to buy SentinelOne, which is down 9%.

  Kevin says the cybersecurity sell-off today is an opportunity to buy SentinelOne. Leslie notes the stock is down 9% today. Kevin gives no fundamental argument, so the case rests on the sector pullback.

  “I would use today's pullback in cybersecurity to buy SentinelOne.”at 45:13

AI infrastructure & data centers

• Kevin Simpson · Capital Wealth Planning

  Investors rightly demand a return on hyperscaler AI capex; winners and losers will separate over five to ten years.

  The week's selloff in CoreWeave, neoclouds and some semis was a reality check. Investors are asking whether companies can keep spending hundreds of billions on AI capex without a return. Simpson sees this as healthy: companies must show a return. In five to ten years there will be haves and have-nots, and some of these companies will not survive.

  “Can we just continue to perpetuity to spend hundreds and hundreds of billions of dollars without some type of return on that CapEx? And I think what we're looking at now is something that's kinda healthy, which is, you know, show me a little bit of a return.”at 2:38

• Rob Sechan · NewEdge Wealth

  AI infrastructure firms will still get financing at a price because their growth rates are high.

  David Solomon said companies that need financing will get it. Financing has a cost relative to the risk-free rate, but the growth rates of these businesses are high enough to absorb it. Other parts of fixed income may struggle with higher rates, but AI infrastructure borrowers can cover the cost.

  “Well, it's always at a price, and it's always at a relative price to what else you could get in the risk free rate. But nonetheless, they'll get financing, and I think the growth rates on some of these businesses are so high that they can handle that.”at 6:00

• Malcolm Ethridge · Capital Area Planning Group

  The AI sentiment shift will hinge on next few weeks of hyperscaler earnings and especially capex guidance.

  Fundamentals look good, but sentiment will turn on earnings over the next few weeks, especially guidance. If companies keep raising data center spending, the market may not reward them as it has, because the debt needed to fund that spending must grow. Investors are losing the magical thinking that growth can continue indefinitely.

  “I think the sentiment shift is really gonna be hinged on what the earnings look like over the next few weeks from the big tech companies that are doing the spending here, especially the guidance part of those earnings calls.”at 8:33

US Treasuries & yields

• Jason Snipe · Odyssey Capital Advisors

  Yields have not peaked and could rise another 30 basis points, hitting leveraged borrowers hardest.

  He believes yields have not peaked and could go higher, with about 30 basis points more possible from here. Companies with leverage on the balance sheet face rising cost of capital and are disproportionately affected. That is why neoclouds and semis have sold off this week.

  “I totally believe that yields have not peaked as of yet. I think they can potentially go higher... Anyone who has leverage on the balance sheet and the cost of capital continue to increase is disproportionately affected.”at 4:00

• Rob Sechan · NewEdge Wealth

  Rates are probably near an interim peak; quality fixed income such as Treasuries and munis is a shock absorber.

  He expects rates to stay elevated but probably near an interim peak, so fixed income is attractive now. The firm is building fixed income exposure, and high-quality Treasuries and munis are the portfolio's shock absorber as the AI trade wobbles. The drag of higher rates falls on businesses that cannot handle them.

  “Honestly, I think interest rates staying persistently elevated, but probably reaching an interim peak. I think, you know, you certainly can buy fixed income here. There's no doubt.”at 6:30

AI: overall outlook

• Rob Sechan · NewEdge Wealth

  AI fundamentals remain very strong; the firm keeps exposure to what it calls the theme of a generation.

  Fundamentals are still very strong, which is the pillar the firm rests on. The earnings spending tied to AI supports it, so the firm stays invested. It hedges with fixed income while maintaining its exposure to a theme it considers the theme of a generation.

  “The fundamentals still very strong. And so the pillar that we rest on, I think, is pretty solid... And then still maintaining your exposure to this theme, which I think is the theme of a generation.”at 7:38

• Brad Gerstner · Altimeter Capital

  Expects choppy AI trade but plans to start buying over coming weeks as prices become enticing.

  Some chop and consolidation was expected and does not surprise him. He is getting more positive and leaning in because prices are coming in and becoming enticing again, so he may start buying over the next couple of weeks.

  “Have to acknowledge that there's gonna be chop along the way... Why am I leaning in and maybe start buying over the course of the next couple weeks because I'm seeing prices come in and start to get enticing again.”at 10:29

Private credit

• Jason Snipe · Odyssey Capital Advisors

  Private credit redemptions continue, and he still sees pressure in the space.

  Private credit redemptions are no longer front and center but are still happening. The pressure is continuing even though the headlines have faded. The larger managers hold up better than others, but the pressure is ongoing.

  “I think private credit redemptions are still happening. They're not front front and center anymore. Right? But they are still happening... But I continue to see the pressure.”at 25:28

• Rob Sechan · NewEdge Wealth

  Private credit pullback is overdone; rising yields will attract capital and the market will self-correct.

  Higher yields attract demand, so private credit's importance and forward returns rise as financing tightens. That is a self-correcting mechanism. Investors are throwing out the baby with the bathwater, as many companies have substantial equity beneath the credit. The best underwriters will still finance the right companies, and the firm may re-add to Blackstone or Apollo.

  “As yields go up, it's attracting demand, and that's a self correcting mechanism... I do think, you know, they're throwing the baby out with the bathwater.”at 26:15

AI bubble & tech valuations

• Rob Sechan · NewEdge Wealth

  Tech trades near a 9% premium to the market, among the lowest in years, unlike the dot-com era.

  Tech trades at a 9% premium to the market, one of the lowest in a long time. At the dot-com peak the premium was about 100%. The market has repriced these names to about 20 times earnings for some of the healthiest, highest-quality companies, so valuation does not signal a bubble.

  “Tech right now trades at a 9% premium to the market. Okay? That's one of the lowest we've seen in a long time. Back in the.com, it was a 100% premium to the market.”at 6:31

AI chips & semiconductors

• Kevin Simpson · Capital Wealth Planning

  Chip stocks are not cheap yet after the drop; he will wait, as they may get cheaper.

  His firm owns six semiconductor names across two portfolios. He is not bearish on them, but being down from highs does not make them cheap. He is not as enthusiastic about rushing in and thinks they may get a little cheaper before he adds.

  “Just because the stock is down off of its highs doesn't mean that it's cheap just yet... I'm not bearish on these names by any means, but I'm not sure I'm as enthusiastic to rush into it just yet. I think they may get a little bit cheaper.”at 10:50

Market sentiment, positioning & volatility

• Rob Sechan · NewEdge Wealth

  Volatility is cheap, so put spreads and collars are an attractive way to hedge equity risk now.

  Volatility is not high and is cheap, though it has risen somewhat this week. Writing calls and buying put spreads or collars on the S&P or QQQ as a proxy hedge lets clients protect the downside and add to positions if markets rerate. This is better than selling and works in taxable accounts, not an IRA.

  “You don't need to think about selling... you can do a put spread collar on the downside to manage your risk. And I'm telling you, it's cheap as I've ever seen it because volatility is not that high.”at 16:16

Enterprise AI adoption & AI software

• Malcolm Ethridge · Capital Area Planning Group

  Companies deploying AI internally will see returns faster than those building AI infrastructure.

  Companies spending a couple hundred million on AI projects can save far more, and the investment is already made. Savings will come faster than the returns for firms building AI infrastructure. Investors should look to where AI is weaponized to improve margins and returns.

  “The companies that are deploying the tech that they're building are the ones that'll see the more immediate, more tangible benefits, and that's where I think investors who are becoming a little bit disenchanted with the AI conversation in general need to be looking.”at 23:51

Private markets for individual investors

• Rob Sechan · NewEdge Wealth

  Alternatives are too lumped together; they offer diversified, uncorrelated returns and tax-efficient access.

  Rob says the firm has long been a big believer in alternatives, and that the industry has categorized alternatives as one asset class when they are broad and diversified. He argues alternatives can deliver returns that are sometimes uncorrelated with the market and offer attractive income. He notes hedge funds are tax-inefficient for individuals, but private placement life insurance can shield some of that burden. He adds that concentration in public markets, with lower-end names not trading well, and elevated multiples in mid-market private equity, make the portfolio benefits of alternatives significant and growing.

  “I think we've done too much categorization of alternatives as one asset class, and it's really broad and it's really diversified.”at 41:48