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Clockwise Capital chief investment officer James Cakmak joins Market Domination hosts Josh Lipton and Julie Hyman to outline his use of a barbell strategy to balance risk amid current market conditions.
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So that being said James, truly here, it's good to see you. So, that being said, do you as an investor, um, sit back and watch as we see the broader universe of AI related names sell off, the large cap tech, etcetera, or you stepping in, you know, maybe core weave is a little too far out the risk spectrum within AI, but are you still getting into or adding on to other names within the universe?
Yeah, actually, we've been taking off risk, uh, for the last couple of weeks now. Um, you know, we still like the AI space. Uh, we're we're not going to be involved in core weave anytime soon. Um, but you know, the way we look at it is you got to take a barbell approach right now. You know, on the one side of the spectrum, you got to have your super defensive names, your commodities, your utilities, what and whatnot. And for every dollar of that, uh we have something on the other side of the barbell, whether it be crypto, AIs, semiconductors. Um, so, you know, we're playing both sides. We see risk to the market for everything that's essentially in the middle, uh where you have earnings risk and um and multiple contraction risk. Um but we just don't know when the turn is. So you have to be involved, but just take a more defensive posture to the portfolio by balancing anything with excess beta with low beta and adding hedges, um and raising cash where you can by selling into strength.