Being Picky With Stocks More Important Than Ever

Julia Ostian, Kenio Fontes, and Jack Bowman talk AI infrastructure, select defense, and undervalued tech stocks like Uber (UBER) and Netflix (NFLX) that offer compelling opportunities amid stretched valuations elsewhere.

Patience and caution are warranted as high treasury yields compete with equities, prompting selective risk-taking and sector rotation.

AI adoption is broadening, but infrastructure players and pragmatic stock selection—avoiding hype and focusing on asymmetric risk/reward—remain central to my strategy.

Defense, quantum, and drone stocks are overlooked due to AI hype, presenting contrarian value plays for diversified portfolios.

Kenio Fontes: I think that I'm acting but acting with more patience right now. So I'm still bullish with a lot of things such as AI and a lot of companies that I was bullish a few months ago. But I'm more cautious about it. Like meta surged 30% in the last few weeks, so I'm definitely a little bit more cautious with with it. Also because of treasury yields, we are seeing a five percent more ten year treasury yield, which is very appealing. So it's something like why take the risk of slow growth company or high valuation company, just giving an an example like Apple, instead of taking a a treasury yield, like a risk free option. I think that's my way of looking at things right now. I'm still bullish, but with a little bit more of a cautious stance.

Julia Ostian: Markets thankfully are very interesting, especially the sector of what I'm focused on is the tech sector with the AI. There are a lot of things going on in the recent months and what I'm trying to do basically is go through all of that hype and try to find some real value, see whether there is still an opportunity for the investors and break down the existing stocks which investors really like in this space to understand when this bubblish environment has the chance to disappear or maybe it will continue. So that's basically what I'm now focused on. Besides, I also like looking for the industries that are beating beaten down. And we could return to that a little later. For example, right now one of them would be probably defense for me. As with all of this environment while we're still at war and the Middle East crisis is not going anywhere. The defense sector is beaten down because of the AI hype because everyone are focused on the AI. So basically that's another area of my interest had been off lately at at least.