Closing Bell Closing Bell 1/16/26
Jan 16, 2026
In this discussion, Kevin Simpson, Founder and CIO of Capital Wealth Planning and Netflix shareholder, dives deep into the impact of Netflix's recent acquisition of Warner Bros. Discovery. He examines the balance between short-term investor preferences and the long-term strategic gains from this deal. Additionally, he highlights Delta Airlines as an attractive investment on the back of solid free cash flow and growth potential. Simpson provides valuable insights into navigating current market dynamics and earnings expectations.
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Market Resilience And Key Risks
- The market shows resilience with breadth expanding beyond mega-cap dominance into mid and small caps.
- Investors watch inflation expectations and Fed independence as key potential disruptors.
Rotate Toward Mid Caps For Cyclical Upside
- Ned Davis Research remains overweight equities while rotating from large caps into mid-caps to capture cyclical growth.
- They caution the One Big Beautiful Bill fiscal boost may fade quickly, risking deceleration.
Risk Appetite Signals Are Mixed
- Tight credit spreads and strong risk appetite suggest investors are heavily exposed to the cyclical rally.
- Watch credit spreads, lending standards, and Fed policy for signs of a breakout or rollover.