TOM LEE: "BUY THESE 3 STOCKS IN 2024 AND NEVER WORK AGAIN"

Summary

In a recent CNBC segment, financial experts Kathy Wood, Tom Lee, and Josh Brown discuss market insights. Wood sets a new price target for Tesla at $2600 by 2029, hinged on the success of autonomous taxis. Lee emphasizes the importance of having Apple, Tesla, and Nvidia in every portfolio due to their AI potential. Brown advises investors to move out of cash and into longer-term investments, especially with the declining risk-free yields. The discussion highlights the shift towards fixed income and the potential of small-cap stocks, urging a long-term investment strategy over short-term speculation.

Takeaways

• 🚗 Kathy Wood has set a new price target for Tesla at $2600 by 2029, contingent on the success of Tesla's autonomous taxi platform.
• 📈 Tom Lee emphasizes the importance of having Apple, Tesla, and Nvidia in every portfolio, as they are seen as leaders in the AI revolution.
• 💡 Josh Brown advises getting out of cash for long-term investments, especially with the potential end of high risk-free yields, and extending the duration of investments like treasuries.
• 💰 Brown also highlights the significant inflow into ETFs in May, with $30 billion going into fixed income, indicating a shift in market sentiment towards locking in yields.
• 🔒 He stresses the importance of locking in the current 5% risk-free rate before it potentially disappears, suggesting that the opportunity is time-sensitive.
• 🏦 The transcript mentions that wealthy individuals often include fixed-income instruments in their portfolios, advocating for a similar strategy for all investors.
• 📊 Tom Lee discusses the potential of small-cap stocks, noting their strong earnings growth and lower price-to-earnings multiples compared to the S&P, suggesting a good risk-reward ratio.
• 📉 Small-cap stocks tend to underperform when there's uncertainty about interest rate cuts, but Lee believes the first rate cut announcement could boost these stocks significantly.
• 🚖 Kathy Wood's price target for Tesla is ambitious and based on the assumption that the autonomous taxi service will be launched within the next two years; failure to do so would result in a lower price target of $350.
• 🛑 Regulatory concerns about autonomous vehicles are seen as overblown, with Wood arguing that the technology has the potential to greatly increase road safety by reducing human error.
• 👥 The discussion also touches on the broader economic implications of investing for the long term, with a focus on the importance of time in the market over timing the market.

Q & A

What is Kathy Wood's new price target for Tesla by 2029?

Kathy Wood's new price target for Tesla is $2,600 by 2029.

What are the three stocks that Tom Lee believes should be in every portfolio?

Tom Lee believes that Apple, Tesla, and Nvidia should be in every portfolio.

What does Josh Brown recommend regarding cash and investment duration?

Josh Brown recommends getting out of cash and extending investment duration, particularly into fixed income, as the risk-free 5% yield is likely coming to an end soon.

Why does Josh Brown advise locking in 5% yields now?

Josh Brown advises locking in 5% yields now because the Federal Reserve is expected to cut rates soon, which will end the opportunity to earn 5% risk-free.

How does Tom Lee view the investment potential of small-cap stocks?

Tom Lee views small-cap stocks as having better earnings growth and lower price-to-earnings ratios compared to large-cap stocks, making them a great risk-reward investment, especially when the Federal Reserve starts cutting rates.

What is the significance of the recent $90 billion inflow into ETFs?

The $90 billion inflow into ETFs in May, with $60 billion going into equities and $30 billion into fixed income, indicates a significant shift in investor sentiment towards these asset classes.

What is the key argument Kathy Wood makes for Tesla's future growth?

Kathy Wood argues that Tesla's future growth will be driven by its autonomous taxi platform, which will provide high-margin, recurring revenue.

What does Tom Lee suggest about the timing of investments in small caps?

Tom Lee suggests that the first announcement of a rate cut by the Federal Reserve will trigger a significant rise in small-cap stocks, making it a good time to invest in them now.

What regulatory changes does Kathy Wood anticipate for autonomous driving?

Kathy Wood anticipates that regulators will increasingly recognize the safety benefits of autonomous driving, which will facilitate the adoption of Tesla's Robo taxis.

What offer does the speaker extend to viewers regarding their Patreon and Stock MVP services?

The speaker offers a 30-day money-back guarantee for their Patreon membership and a 25% discount for Stock MVP subscribers who sign up within the next 24 hours using the code Tom 25.