The first 100 days of President Trump’s term saw the S&P 500 dip over 7%, and the tech-heavy Nasdaq Composite fall by a significant 11%. Consumer staples proved to be the most resilient sector, showing a 5% increase, while consumer discretionary took the biggest hit, losing 13%. CNBC’s “Fast Money” trading experts weighed in on where they see the most promising and problematic areas in the market over the next 100 days.
Karen Finerman highlighted big-cap pharma as a promising area, citing its oversold status and relative safety from tariff impacts. However, she foresees trouble in the container shipping sector, predicting a potential reduction in container availability and negatively impacted income statements if tariff disputes remain unresolved.
Tim Seymour identified semiconductors and international investing as key areas of opportunity. He believes the semiconductor sector presents a compelling buying opportunity due to undervalued prices and anticipates a resurgence in supply and demand in the second half of the year. His “MIGA” (Make International Great Again) strategy focuses on international markets, pointing to Germany’s DAX index outperformance as a potential trend to continue. Conversely, he anticipates problems for companies heavily reliant on consumer credit and discretionary spending, anticipating a consumer belt-tightening response to high prices and job market uncertainty.
Dan Nathan adopted a more cautious stance, predicting that “cash will be king.” He believes that even defensive sectors like utilities, consumer staples, and U.S. Treasuries, which traditionally perform well during economic downturns, will eventually suffer due to the negative effects of a potential tariff-induced recession. He expressed significant concern about sectors like transportation (planes, trains, and automobiles), anticipating a substantial drop in demand due to a protracted trade war.
Guy Adami took a unique position, highlighting retail as both a promising and problematic sector. He sees the retail industry as being in a precarious position, with high stakes related to the overall economic climate and employment numbers. He believes the market is currently overvalued, suggesting potential challenges ahead.
To gain deeper insights into personalized investment strategies, consider attending the next “Fast Money” Live event. Remember that Tim Seymour manages the Amplify CWP International Enhanced Dividend Income ETF. This analysis is for informational purposes only and should not be considered financial advice.
