5 stocks winning the rotation in 2026

Transcript:

Caroline Woods
Big tech has dominated portfolios for years, but David Johnson's apical banal picks close present don't see a azygous mag 7 name. Joining maine with his precocious condemnation names is David Johnson, main concern serviceman astatine the Johnson Group. David, truthful bully to person you here.

David Bahnsen
So bully to beryllium with you.

Caroline Woods
So earlier we get into your apical picks, conscionable code that quickly. Is that due to the fact that you already ain mag 7 oregon are you conscionable betting that the tech pb epoch is implicit here?

David Bahnsen
No, it's not a atrocious astatine all. We're conscionable dividend maturation investors and determination are nary dividend maturation names successful the mag seven. And from a valuation standpoint we judge and it's evidently proven retired to beryllium precise existent for astir a twelvemonth now, that there's nary specified happening arsenic the Mag seven, that determination are idiosyncratic names. Do you person Nvidia and Google past twelvemonth that are up huge?

You person different names that are down a clump of names that are beneath market. I'm not definite that immoderate of them are up a twelvemonth to date. They're each conscionable trading connected a precise antithetic dynamic. So we don't spot it arsenic a monolithic group. And past erstwhile you look astatine the idiosyncratic names, immoderate of those valuations could go attractive.

But again, from a dividend maturation standpoint, it doesn't acceptable our criteria. And we bash deliberation that they mostly commercialized disconnected of popularity. And that's not a, concern thesis that we person condemnation in.

Caroline Woods
Okay. So let's get into immoderate of your apical picks, starting with Blackstone, which is down implicit 20% twelvemonth to date. Why are you bullish here? What are investors missing.

David Bahnsen
Yeah. Blackstone is astir apt the sanction that implicit my 26 years managing money, we've made the astir wealth successful and and it has luckily for america gone down present implicit the past year. I accidental luckily due to the fact that we're large buyers and we're perpetually reinvesting dividends and Blackstone is being caught into a beauteous antagonistic sentiment amongst each the alternate plus managers.

All the names successful the abstraction are down, and we deliberation it is wildly misunderstood arsenic it pertains to Blackstone. They person implicit $1 trillion of assets paying fees. As an proprietor of Blackstone, we're sharing successful those fees erstwhile they negociate wealth well, which they astir ever bash crossed existent estate, backstage equity, backstage credit, infrastructure. Then we get a carried involvement and that's each it is.

There's nary superior intensity. It's not equilibrium expanse investing. So you're investing successful their quality to rise money, which they evidently bash precise well. But past you're besides investing. You're investing successful their quality to negociate a well. They've ne'er had a backstage equity money successful 40 years suffer money. They're conscionable outstanding plus allocators. Now the sentiment is precise antagonistic close now.