The David Lin Report Market Rally Not Over Says Fund Manager; These Sectors Have Most Upside | Chip Rewey
Jul 25, 2025
Chip Rewey, CIO at Rewey Asset Management, shares his insights on market dynamics and investment strategies. He dismisses recession fears, predicting solid GDP growth and highlighting the potential of small and mid-cap stocks, particularly in the AI, semiconductor, aerospace, and banking sectors. Rewey critiques the concentration risk of the S&P 500 and emphasizes the importance of strong fundamentals in smaller companies. He also discusses regulatory changes in banking and the administration's strategies for interest rates, illustrating a cautiously optimistic economic outlook.
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Economy Moderating, No Recession Imminent
- The economy is moderating but remains healthy without a looming recession.
- Market pricing already includes multiple recession fears that have not materialized.
Active Stock Picking Over ETFs
- Avoid ETFs focused on small/mid caps because of liquidity and coverage issues.
- Use active selection to find undervalued small/mid caps with strong balance sheets and growth potential.
S&P 500's Concentration Risk
- Market cap weighting over-concentrates risk in a few big companies.
- Large cap leaders may plateau or decline short term, creating opportunities elsewhere.