03 Sep Why Goldman think it’s time to cut exposure to U.S. large-cap stocks
(This is a wrap-up of the key money moving discussions on CNBC’s “Worldwide Exchange” exclusive for PRO subscribers. Worldwide Exchange airs at 5 a.m. ET each day.) Investors are looking for opportunities in cybersecurity and professional sports, while Charles Schwab’s head of trading is looking at the Nasdaq Composite technicals. Worldwide Exchange Pick: Madison Square Garden Sports (MSGS) Chris Marangi of Gabelli Funds said Madison Square Garden Sports is a value play that gives exposure to professional sports. “They are very few ways to participate in sports assets. MSGS is one of them. They own the Knicks and the Rangers,” said Marangi. “For less than $5 billion, you own the Knicks and the Rangers, the stock is worth at least double that. … The Dolan’s are not going to sell the company, but they could sell a stake in one or both of those teams. So if they sold say 105 of the Knicks at $1 billion that’s a billion dollars, they could return a quarter of the float.” Worldwide Exchange Pick: Cybersecurity stocks Storm Uru of Liontrust Asset Management sees upside for cybersecurity stocks on the back on Zscaler earnings. “Cybersecurity in particular, we now have threat actors that have increased capabilities, more cyber threats, we also have AI agents that are going to be operating within the organization. Areas of opportunities around the next five years are really around identity, really around cloud protection and also endpoint protection,” said Uru. Goldman on diversifying away from U.S. large-cap stocks Christian Mueller-Glissmann of Goldman Sachs said it is time for investors to consider reducing exposure to large-cap U.S. equities. “We have had an enormous resurgence of U.S. equities lead by U.S. large-cap tech and a few companies a very concentrated rally. That is predicated on the goldilocks momentum,” said Mueller-Glissmann. He added he sees a difficult path forward and a scenario where weaker dollar switches from a tailwind for US stocks and earnings to a tailwind. “If the weaker dollar trend resumes it will be good for the large cap tech companies, but when you talk about international investors that are buying U.S. equities, the drag outweighs to some extent the benefits,” he said. Nasdaq technicals The Nasdaq is trading very close to its 50-day moving average a level that could be concerning for the broader tech trade according to Charles Schwab’s head trading and derivatives strategist Joe Mazzola. “It’s a bit concerning, because the last time we touched the 50 day was back in May,” said Mazzola. “I don’t think it’s a huge deal if we touch it in balance. I think if we break it then that could be a bigger issues because then we probably don’t have support down until you get the beginning of August where that low was around 20,600.”