Vertical Research Advisory

Kip Herriage Live On Making Money with Charles Payne – Fox Business – May 03, 2024

Check out Kip's Latest interview with the great Charles Payne on his Fox Business Show, Making Money. In this interview, Kip covers the VRA Investing Strategy, our stance on the latest from the Fed, Chinese Tech Stocks, and our to ...

Posted On May 04, 2024-

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About This Episode

Check out Kip's Latest interview with the great Charles Payne on his Fox Business Show, Making Money. In this interview, Kip covers the VRA Investing Strategy, our stance on the latest from the Fed, Chinese Tech Stocks, and our top US stock picks going forward. Overall, the VRA remains bullish and optimistic on this market.


Charles Payne [00:00:00]:
My next guest says that despite five major policy errors by Jay Powell, he deserves an A+ for the FOMC statement this week. And his presser, let’s bring in vertical research advisory managing partner, Kip Herriage.

All right, Kip. So you really are one of these what have you done for me lately kind of guys, right? So you say he’s had five mistakes. He’s messed up big time. What does this, what does this new affection for Powell mean for the markets?

Kip Herriage [00:00:28]:
Well, you know, as I watched the press conference, the FOMC statements are typically, you know, pretty what we much what we expect. It’s pals pressure that you never know what’s going to happen because he goes off script so often. And so as we were watching it, I was like, okay, cut his mic because he’s doing perfect. Cut his mic. End it now. But he never, he never made that flub, that mistake that typically sends the markets lower. And as I watched the press conference, it looked to me very much like Jay Powell knew what this number was going to be today. We actually kind of wrote that up.

He was a very confident guy, very relaxed when people talked about, are you going to hike rates? You know, he just. Or do we have stagflation? You know, he just pushed him to the side. So I think this Powell is very confident. I think that now we’re back to where we said we’d be at the beginning of the year, Charles, as you know, two to three rate cuts this year, probably both of those rate cuts before the election.

Charles Payne [00:01:23]:
You know, it’s interesting, I did ask someone the same question. You always get the feeling, to your point, Powell seemed, I called him a combination of Paul Newman and Steve McQueen. He was cool, calm and collected. Right? I’m told that the president got the report, I think, yesterday, and then it moved down a food chain, and Powell got it somewhere late yesterday. We’ll wink, wink. All right. So with that in mind, you were aggressive. You were aggressive late last year.

You’ve been aggressive all year long. Even though we’ve had this little bit of a swoon, are you still aggressively long this market right now?

Kip Herriage [00:01:55]:
Even more so than the last time I was on the show. We actually added to our positions last week in the semiconductors, in tech. You know, we think that’s the group that’s going to continue to lead from the birth of quantitative easing. The semiconductors have been the market tell. If you just follow the semiconductors, you know what the market direction is. And last week, they hit their most oversold levels that they hit since the bear market bottom of October 22. When we started buying them, we actually doubled up in our position last week. Charles.

We think this, this market is going to be a rocket ship higher into the election, and I don’t think it’s a mistake that that’s going to happen.

Charles Payne [00:02:30]:
All right, time to give you some props, my man. The fourth quarter last year, you gave us a lot of stocks and positions ideas. Now, Nia Na il of 43%. Sox L. Sox L up 63%. Erx up 18%. You still holding those?

Kip Herriage [00:02:48]:
We are. We don’t hold. Nail. We took profits in. Nail. But a matter of fact, if we hadn’t bought the semiconductors more aggressively, we would have added nail. The three time leverage to housing ETF. We want to buy that again, but we do own the others right now.

Semiconductors and energy and small caps.

Charles Payne [00:03:03]:
KWEB, Kweb. It’s coming on strong lately. You’re still fractionally lower from the time you said you liked it. You still buying?

Kip Herriage [00:03:11]:
Yes, we are buying. Chinese stocks have bottomed. It’s been a two year bear market. It’s been brutal. We avoided that group. We think chinese, specifically chinese Internet stocks are the place to be. They’re trading at multiples, 20 to 30 year low multiples based on earnings. And we think that China, now that the US economy is slowing, here comes China’s economy.

It’s almost like it’s a coordinated system we have here. And we think the chinese stocks can do very, very well over the next couple of years. Again, specifically chinese tech stocks.

Charles Payne [00:03:39]:
All right, before I go, you do like Tesla here. Tesla. You know, speaking of China, that good news out of China sort of made everyone forget everything they were saying about Musk and maybe he comes back and bitcoin. Bitcoins some, you know, is this consolidation of bitcoin, that move this late move down?

Kip Herriage [00:03:59]:
Yeah, I think so. You know, this is really trading par for the course after the havings. The month after the having is typically weak and then it starts to accelerate. In the previous three halvings, the average move higher and bitcoin has been more than 3000% over the next twelve months. We don’t think we’re going to get that kind of a move here, but we are aggressively long bitcoin looking for 100,000 by year end.

Charles Payne [00:04:19]:
All right, so all the Wall street axioms there buy the rumor, sell the news under, under, under promise and over delivery, we hope. Hey, Kip, great having you on. Talk to you again. Have a great weekend.

Kip Herriage [00:04:31]:
Appreciate it. Charles, good morning.

Charles Payne [00:04:32]:
All right, folks. So my next guest says that the airfoil employment report is, quote, the beginning of the.

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Time Stamps

00:00 FOMC press conference, Powell's confidence
03:59 Optimistic outlook for Bitcoin reaching $100,000.

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