Closing Bell Closing Bell Overtime: Markets rally after weekend actions in Venezuela, L3Harris CFO on global defense 1/5/26
4 snips
Jan 5, 2026 
Drew Pettit, U.S. equity strategist at Citi Research, dives into the market's positive reaction to recent events in Venezuela, discussing implications for energy stocks and overall equity positioning. Richard Haass, President Emeritus of the Council on Foreign Relations, shares insights on U.S. foreign policy, exploring the leadership changes in Venezuela and the geopolitical landscape. They also analyze how these developments might reshape market dynamics and investor sentiment in the coming months.
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Markets Look Past Geopolitics When Macro Is Calm
- The market shrugged off the Venezuela operation because cross-asset implied volatility stayed low and macros looked stable.
- Drew Pettit says that intact macro fundamentals make equity rally appropriate despite geopolitical shocks.
Allocate To Financials And Tech Leaders
- Position for 'run it hot' by owning cyclical financials and tech leaders with high returns on growth capex.
- Drew Pettit recommends financials for cyclical exposure and semiconductors/software for growth beta in 2026.
Trade Rebalancing Could Weaken The Dollar
- A shrinking U.S. current account deficit could restructure global capital flows and weaken the dollar.
- Barry Knapp warns that a multi-year dollar decline would boost cyclicals and emerging markets but could trigger intermittent risk-off episodes.