Bloomberg Businessweek Wall Street Is Warning Investors to Get Ready for Stocks to Drop
Aug 4, 2025
Aaron Jagdfeld, CEO of Generac, shares insights on the booming demand for backup power solutions amidst rising power outages. Kate Gulliver, CFO of Wayfair, discusses the company's recent revenue growth and the impact of consumer spending trends along with tariffs. Joyce Mullen, CEO of Insight Enterprises, explores changing customer preferences in tech solutions, especially towards AI investments, and the hesitance in larger projects. Together, they analyze the precarious state of the market and the implications for various sectors.
AI Snips
Chapters
Transcript
Episode notes
Value Investing Outperforms Internationally
- International value investing is currently outperforming U.S. markets significantly due to a weaker dollar.
- The U.S. market shows the largest undervaluation gap between value and growth in 25 years, indicating opportunity away from narrow tech leadership.
Narrow Market Leadership Risks
- The current market is dominated by a very narrow group of "Magnificent Seven" tech companies driving substantial profit growth.
- Such narrow leadership and momentum is reminiscent of 1987, suggesting a potential imminent market correction.
Focus on Results and Pragmatism
- Deliver strong results and expand margins consistently to rebuild investor confidence.
- Focus on pragmatic, no-regrets technology projects that deliver fast, tangible outcomes for customers.