About this video

• Video Title: Investors should be buying the dips, says Hightower's Stephanie Link
• Channel: CNBC Television
• Speakers: Stephanie Link, Andrew (host)
• Duration: 00:06:10

Overview

This video features Stephanie Link of Hightower Advisors discussing investment strategies amidst market volatility. Link advises investors to buy on dips, citing strong economic performance and growing earnings. She highlights specific stocks like Meta, Microsoft, Eaton, Uber, Rockwell Automation, and Starbucks as potential buys, while cautioning against investing in energy and meme stocks. The discussion also touches upon the AI market, its growth potential, and the importance of investing in profitable companies within this sector.

Key takeaways

• Buy the Dips Strategy: The current market volatility, particularly in November, presents opportunities to buy stocks, as the economy is performing well and earnings are exceeding expectations (growing at 12.5% compared to a historical trend of 5%).
• Recommended Stocks: Stephanie Link suggests investing in technology and specific companies such as Meta, Microsoft, Eaton (due to data center growth), Uber, Rockwell Automation, and Starbucks, noting recent positive performance or turnaround potential.
• Sectors to Avoid: Link advises against investing in energy stocks, viewing them as a "value trap" due to the administration's desire for lower oil prices. She also strongly cautions against "meme stocks" due to their unpredictable nature.
• AI Market Outlook: Despite concerns about a potential bubble, Link believes the AI market has significant growth potential, with total addressable market expectations increasing from $1 trillion to $4 trillion by 2030. She emphasizes investing in profitable AI companies rather than speculative ones.
• Profitability is Key: When considering AI investments, the focus should be on companies that are already profitable and demonstrating strong revenue growth and expanding margins, rather than chasing unproven concepts.

Stephanie Link recommends buying the dips for two primary reasons:

1. Strong Economic Performance: The economy continues to perform well, which is driving better-than-expected earnings for companies.
2. Robust Earnings Growth: Corporate earnings are growing significantly (12.5%), which is much higher than the historical trend of 5%. This indicates underlying strength in the market.