Why this strategist is still buying the dips in Big Tech
Wed, December 31, 2025 at 4:18 PM EST
There have been concerns about an AI bubble and that, perhaps, some Big Tech stocks are becoming too expensive. But Hamilton Capital Partners chief investment officer Alonso Munoz says he is buying the dips in Big Tech.
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Video Transcript
00:00
Speaker A
We've had uh concerns about concentration. There's too much money uh too much performance by the big tech. Uh but to end the year, we didn't really really see that. We actually saw things kind of broaden out. You take a look at the equal weighted indices. We saw a lot of participation. So, where do you think the big moves are going to happen next year?
00:20
Speaker B
Well, Jared, I think that's a little just to back up. I think that's a little bit of a good thing to see some money flowing out of some of those high valuations, maybe spreading uh spreading the the good luck across the market. But going into next year, the setup is so good for some of these AI and tech companies that are delivering on earnings. We have a lower rate environment, the economy's humming really well, and the leaders are are continuing to lead. So Jared, you know we own Google, you know we own Tesla, you know we own some of these big tech companies and we have for a long time. Uh these bouts of volatility are not going to change the narrative. We're just going to be buy the dippers.
00:48
Speaker A
All right, buy the dippers. I like that. It worked out pretty well in 2025. Even when you had that post liberation day uh slump that was almost a bear market.
00:58
Speaker A
Let's talk about the Fed because that has been a big wild card and I note here that you're saying that there might be a rate cut in January. That is against consensus. So talk to me about what you expect from the Fed this year.
01:06
Speaker B
It is. So we saw the unemployment uh unemployment rate rise a little bit to 4.6 and I think that's going to be important as we really uh, you know, analyze inflation going into the next couple of months. Inflation data came in a little bit better than expected and that unemployment rate is rising. And so that really backs the Fed into a corner on what to do. But think about some of the risk here. Jerome Powell is on the way out. Uh the President Trump hasn't made a decision on who's going to be the next chair of the Fed and we think that consensus is shifting. FOMC minutes came out yesterday, a lot of movement toward maybe rate cuts in 2026, maybe even January.
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