The David Lin Report Will Fed Shock Markets This Week? Forgotten Stocks That Could Soar Next | Thomas Hayes
Oct 28, 2025
In this discussion, Thomas Hayes, Founder of Great Hill Capital, shares insights on smart investment strategies amidst shifting market dynamics. He emphasizes the importance of investing in undervalued, quality stocks rather than expensive tech. Hayes also explores the potential impact of China trade frameworks on the market and highlights overlooked AI investment opportunities. He discusses the implications of government equity stakes and predictions for Fed policy, suggesting possible rate cuts as the economic landscape evolves.
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CapEx Without Returns Compresses Margins
- Multiple expansion usually follows growth expansion, but MAG7 multiples stayed high despite earnings halving year-over-year.
- Heavy CapEx by MAG7 raised expectations without clear returns, pressuring margins and EPS.
Narrow Rally Could Soon Broaden
- Market gains have been concentrated in a narrow group; many broad-market names lagged the rally.
- A rotation into previously unloved stocks could occur after tax-loss selling ends in late October.
Buy Cheap Quality AI Beneficiaries
- Buy overlooked quality names that benefit from AI without being massive CapEx centers.
- Examples Thomas Hayes cites: Alibaba, Intel, and Comstock Resources as non-obvious AI beneficiaries.