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NVIDIA Corporation (NVDA)
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Shopify Inc. Class A Subordinate Voting Shares (SHOP)
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Vertiv Holdings LLC Class A (VRT)
Q: Names like VRT, NVDA, SHOP have now corrected about 15%. I like to buy in these situations all the while being fully aware that I suck at timing the bottom of a correction, knowing only that I am getting a deal compared to recent highs. My questions are: Any red flags on any of these? Do you see other names with similar or greater pullbacks that are equally or more compelling? A list of those would be appreciated. Thank-you.
5i Research Answer:
The main cause for concern is the uptick in bond yields. But we saw 5%+ in the 10-year before, and markets survived that pretty easily. We would view current market action as a normal correction and do not see a lot of red flags that haven't been discussed to death already and are likely priced in (tariff, war, valuation, inflation). We like the stocks listed with the question.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in NVDA, VRT.