Transcript:

CAROLINE WOODSJoining me now, Matthew Tuttle, CEO of Tuttle Capital Management. Matthew, happy Friday. Thanks for joining us.

MATTHEW TUTTLEThank you for having me.

CAROLINE WOODSBefore we get into your market view and stock picks, I first want to ask you about this Warner Brothers Discovery Netflix deal. Will it happen?

MATTHEW TUTTLESo the stock was initially trading like it wasn’t going to happen. It’s come back a lot. You know I my sense is it will. I mean I know deals like this have been struck down in the previous administration. We’ve got a whole new set of regulators. I don’t think they would have tried to do this if they didn’t have a really good sense it was going to happen.

MATTHEW TUTTLESo, you know, I’d be I’d be a buyer of the Netflix dip here. And I do think this deal is going to end up happening.

CAROLINE WOODSOkay. So in terms of stock reaction we see Netflix lower only by about 1% right now. But to your point about 5% lower. This month we have wbd higher. And then Paramount’s Skydance taking the biggest hit. So as you think about these as stock opportunities, Netflix is most attractive.

MATTHEW TUTTLEI would say Netflix is most attractive. You know, we’ve got a lot left to go on this whole streaming thing. You know, I don’t know about you, but I’ve got like seven different streaming services. That doesn’t make sense. You know, we’ve got a lot to figure out here, but I think Netflix is really well positioned to come out of this as the clear winner.

MATTHEW TUTTLESo that that’s the name that I would be in and I wouldn’t be in any of the others turf.

CAROLINE WOODSOkay. Any of the others overall, even a Disney, for example.

MATTHEW TUTTLEI wouldn’t be in Disney. I haven’t like that stock and I don’t remember the last time. I like that stock. You know, Apple might be the only one because I mean, Apple TV’s not that big a deal. You’re not buying Apple for Apple TV, you’re buying them for throw all the other things. But beyond that, Netflix would be the only name.

CAROLINE WOODSOkay. All right. Let’s talk about your market view because stocks have seasonality on their side. We’ve seen actually some pretty modest gains for the first week of December. It’s been a great year. Are you expecting a Santa Claus rally this year? Matthew.

MATTHEW TUTTLESo it depends on what Powell says next week. I am expecting a Santa Claus rally. I mean, I think the the headwinds or the tailwinds are behind the market here. You know, every dip gets bought every time everyone is freaking out about something. You know, it ends up being a dip buying opportunity. But Powell does have the potential to play Grinch here.

MATTHEW TUTTLEIf either a he doesn’t cut or B he says the economy’s in awful shape, which is why we’re forced to cut. I don’t think either thing either of those things are going to happen. So I am bullish in the year end.

CAROLINE WOODSAnd then what about as you think about 2026, are you as bullish.

MATTHEW TUTTLEI am cautiously bullish. There are some headwinds. There’s the whole open AI. And you know all of the creative financing. There’s what’s going on in private credit what’s going on in Japan. What is the fed squad if they cut here. Do they keep cutting. So there’s a lot of things that, you know, you should be a little concerned about.

MATTHEW TUTTLEYou know, what we teach investors is always have hedges. And if you’ve always got hedges, you can sleep well at night. You don’t have to worry about it.

CAROLINE WOODSOkay, so let’s talk about what’s on your shopping list as we, you know, continue with the final trading month of the year. As you think about 2026. And then also how are you hedging.

MATTHEW TUTTLESo on my shopping list, what we look for are what is going to be the most disruptive themes over the next 12 to 36 months. And then within those themes, what are the top names? So you know, I obviously I think that’s got an interesting from the standpoint that a couple of months ago I would have told you Nvidia is the obvious winner and I now I would say they are one of the obvious winners in AI.

MATTHEW TUTTLEYou’ve got Google in there. You’ve got Broadcom in there. You might even have AMD in there. So looking at that I love the meta news this morning that they’re getting out of this hole. Or you know not spending so much time on this whole metaverse thing and pivoting more towards AI. One area we really like that I think is below the radar screen is space.

MATTHEW TUTTLEYou know, there are a whole bunch of things that are made down here that are better off in space. You’re going to have a whole infrastructure. It’s a ways away. And they’re not a lot of companies like Rocket Lab and Lunar, you know. So those are some things we like. Biotech is an area we like, especially related to AI.

MATTHEW TUTTLESo a name like Tempus, I would be another one.

CAROLINE WOODSSo basically tech, which of course is outperform this year will continue driving the market higher in 2026. Are there other areas of the market though that we could see participation in that you’d also be interested in?

MATTHEW TUTTLEYeah I mean anything drone related we like I think drones are the future of warfare. So a lot of these smaller defense companies like a Kratos or something like that, you know, we like that. You know, we like anything kind of energy related. It’s an AI trade. But, you know, AI is going to need so much power.

MATTHEW TUTTLESo it’s, you know, it’s nuclear. It’s solar, it’s natural gas, it’s coal. You know, those things. I also think you ought to own gold and silver, and you also ought to own crypto. You know, I would be very careful, having a lot of my money tied up in fiat currency and a lot of my money tied up in bonds.

MATTHEW TUTTLEIn fact, I hate bonds. But, you know, I much prefer having gold. Silver? And, you know, the big cryptos, Bitcoin and ether.

CAROLINE WOODSAre those the best hedges? Are you hedging with anything else either? Because.

MATTHEW TUTTLENo, I mean, those are really.

CAROLINE WOODSGreat.

MATTHEW TUTTLEThings. Yeah. I mean sometimes like the crypto brokers will come out and be like, oh, crypto is ahead. Crypto is not a hedge. Sometimes gold is a hedge. But for me, a hedge is something. It works every time, and those things don’t. I love buying puts on Ark. You know, I think that’s a great fund.

MATTHEW TUTTLEAnd when the market goes down, that goes down a lot. We’re probably going to add some puts on the Nasdaq just in case this AI thing unravels. You know, so and, you know, sometimes we’ll buy calls on VIX. You know, those are kind of the tried and true hedges that we like to use.

CAROLINE WOODSOkay. So your best advice for investors as we head into next week with Fed Chair Powell. Obviously it sounds like you think the market could be a little bit vulnerable to what he says although you seem pretty bullish. So best advice for investors heading into year end. And as they think about 2026.

MATTHEW TUTTLEAgain going back to what I said, we look at what are the most disruptive themes going to be going forward. Pick the winners in those themes. I would stay away from anything related to the consumer. I think we’ve got a two tier economy where the rich are doing better and the poor are doing worse. So, you know, I wouldn’t touch anything that that has any relation to the consumer.

MATTHEW TUTTLEI wouldn’t touch anything that has any relation to private credit. There are cracks in that area that, you know, may or may not break. But I’d focus on, you know, where are the top themes going forward in just being those winners?

CAROLINE WOODSAnd just finally, are there any other themes outside of AI space and drones to your to your point, earlier?

MATTHEW TUTTLESo again, biotech. But then within biotech, the other one is is the weight loss drugs. I love Eli Lilly. You know everybody I talked to now is on on you know, Zepp found there are Ozempic or something. So you know that that that that’s a trend that I think you also want to be in.

CAROLINE WOODSOkay. We’ll leave it there. Matthew Title CEO, Tuttle Capital Management. Thank you so much.

MATTHEW TUTTLEThanks for having me.