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The Federal Reserve could move interest rates closer to 6%, said Dan Niles, founder of the Satori Fund. "I think the Fed, quite honestly, is going to get higher to 6% before they stop raising," Niles said on CNBC's "Tech Check." The central bank last hiked interest rates by 25 basis points at its meeting earlier this month. That moved the target rate for interest rates to between 4.5% and 4.75%. Market observers and participants have disagreed on when the Fed will stop raising interest rates.
CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. It's as if investors aren't concerned about inflation and higher interest rates anymore. It appears that the prospect of sustained economic growth is injecting optimism into stocks too. Recent economic activity and market movement are forcing economists and investors to reconsider the effect of interest rates. The higher cost of borrowing typically slows economic growth by curtailing spending and increasing unemployment which, in turn, depress stocks.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe were expecting a 'Santa Claus rally,' says The Satori Fund's Dan NilesDan Niles, The Satori Fund founder and portfolio manager, joins 'TechCheck' to discuss his 2023 outlook on the market and break down Big Tech names.
Despite the January bounce , hedge fund manager Dan Niles sees more volatility ahead. Top picks for 2023 Amid the volatility, Niles has five top picks for investors. He said his Satori Fund well outperformed the S & P last year by making money, but did not disclose its exact performance. It continues to be one of the top trades this year for Niles, who called it his "favorite investment in 2023." Sitting on cash allows us the flexibility to reinvest if the S & P goes lower in 2023," Niles said.
Hedge fund manager Dan Niles said he expects stock markets to fall by the middle of this year as the Federal Reserve opts to keep interest rates higher for longer. Niles, founder and senior portfolio manager of the Satori Fund, told CNBC's "Street Signs Asia" Thursday that there was a "disconnect" between market expectations and the U.S. central bank's messaging. His comments echo Fed Chair Jerome Powell, who said he doesn't expect to cut rates this year after the central bank raised interest rates by 25 basis points Wednesday. However, interest rate swap data shows that a significant proportion of the market expects a cut in the base rate by the middle of this year. However, despite his bearish outlook, the hedge fund manager said there could be several tailwinds in the near term for the U.S., such as the Fed pausing after two more rate hikes, inflation slowing, and China's reopening.
Amazon Web Services leads the cloud infrastructure market, with almost 39% share in 2021, according to estimates from industry researcher Gartner. Revenue growth at AWS has generally decelerated since 2015 as the segment has become larger and competition has picked up. In the fourth quarter, AWS generated $21.4 billion in revenue, representing 14% of Amazon's total revenue. Also in the quarter, AWS announced the availability of data center regions in Spain and Switzerland. WATCH: Amazon Web Services revenue growth will slow down more in 2023, says Satori Fund's Niles
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMarkets still seeing 'bear market rally,' says Satori Fund founder Dan NilesSatori Fund Founder Dan Niles joins 'Closing Bell' to discuss the three best sectors from this year, balancing risk versus reward with bonds or equities, and the technology gap in semi production that is starting to narrow.
Dan Niles says he wouldn't touch Apple going into earnings
  + stars: | 2023-01-30 | by ( Yun Li | ) www.cnbc.com   time to read: +1 min
Hedge fund manager Dan Niles said Monday that he wouldn't invest in Apple heading into its quarterly earnings given the high valuation. "I wouldn't touch Apple," Niles said on CNBC's " Closing Bell " Monday. Apple is slated to report fourth-quarter earnings after the bell Thursday. It is trading at 24 times forward earnings, much higher than the S & P 500, which is trading at around 18 times earnings, Niles said. Apple gave a rare warning to investors last November, explaining that production issues would result in lower shipments than "previously expected."
Watch CNBC's full interview with Satori Fund founder Dan Niles
  + stars: | 2023-01-30 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Satori Fund founder Dan NilesSatori Fund Founder Dan Niles joins 'Closing Bell' to discuss the three best sectors from this year, balancing risk versus reward with bonds or equities, and the technology gap in semi production that is starting to narrow.
Last year's bear market left many investors deep in the red, but hedge fund manager Neal Berger bucked the trend. 'My bible is the price action' That's why the veteran fund manager is sticking to his tried-and-proven playbook. "As a trader, my bible is the price action. I'm a student of price action and I'm going to be trading the market in accordance with the longer-term trends," he said. He noted that the one-year trend of all asset prices, such as stocks, bonds and crypto, is pointing downward.
Next week is one of the biggest of the year for health-care investors, and it has historically been a good time to own ETFs that track the industry. The 2023 JPMorgan Health Care Conference is set to kick off next Monday in San Francisco. The sector's S & P 500 weight also sits at a 50-year high of 16%. According to a note from Goldman Sachs, health care is now the second-biggest weight in the S & P 500. Merck , Eli Lilly and AbbVie were a few of the stocks with the biggest positive contributions to the S & P 500 last year, according to Goldman.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailEarnings estimates will get cut economy slows down from rate hikes, says Dan NilesDan Niles, Satori Fund founder and portfolio manager, joins 'Squawk Box' to discuss Niles' core investment principles this year, what stocks Niles does like and more.
Hedge fund manager Dan Niles is preparing for the potential of another steep decline for stocks in 2023 with a top picks list that leans defensive. Niles said on CNBC's " Squawk on the Street " Tuesday that he expects the S & P 500 to fall to 3,000, which is more than 20% below where the index finished 2022. Another area that Satori Fund is focused on is health care. There were also two individual stocks on Niles' list. Niles said that he believes in the Instagram parent's cost-cutting plans, making its cheap multiple – relative to other internet stocks – attractive.
Watch CNBC's full interview with the Satori Fund's Dan Niles
  + stars: | 2023-01-03 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with the Satori Fund's Dan NilesDan Niles, Satori Fund founder and portfolio manager, joins 'Squawk Box' to discuss Niles' core investment principles this year, what stocks Niles does like and more.
Despite the comedown, many stocks still are expensive on a price-to-earnings basis when compared with the broader S & P 500, which trades at 18 times earnings. As of Monday's close, Meta shares trade at 11 times earnings on a 12-month trailing basis, down from 24 times at the start of 2022. PE ratios for all three stocks have come down significantly this year, with Cisco trading at 17 times earnings, compared to more than 23 times at the start of 2022. Within the semiconductor sector, Meeks favors names operating within industrials and autos, that are better positioned in a slowdown. While risk-averse tech may be the name of the game for 2023, some investors caution opting out of growth altogether.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailDan Niles: Enterprise spending and cloud service companies will suffer next yearDan Niles, The Satori Fund founder, joins 'TechCheck' to discuss what could be the next shoe to drop, what information investors need to look at and more.
U.S. tech stocks have been a minefield for investors this year, but hedge fund manager Dan Niles is optimistic on the sector elsewhere. Niles, who is founder and senior portfolio manager of the Satori Fund, told CNBC's "Street Signs Asia" Friday that his fund just bought some international tech stocks. It has short positions in tech stocks with advertising exposure. On the flip side, he warned investors off cloud computing and software stocks with "consumption-based models that will be hurt by tech company layoffs." So everybody needed to buy software, cloud computing resources, make sure their business survived," Niles told CNBC's "TechCheck" separately last week.
Dan Niles shares how to trade tech and names stocks to buy
  + stars: | 2022-12-13 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailDan Niles shares how to trade tech and names stocks to buyDan Niles, who is founder and senior portfolio manager of the Satori Fund, discusses how to trade tech amid the volatility, and names one area to avoid.
He believes the S & P 500 will see a Santa Claus rally before hitting a new low in 2023. "Why are we bearish longer-term and believe the S & P will hit a new low in 2023?" Niles said the U.S.-focused long-short equity fund is up this year, beating the S & P 500, which has declined around 17% in the same period. Key to its outperformance is the strategy of pairing short positions with long ones, Niles said. The Satori Fund has short positions in tech stocks with advertising exposure, such as Google parent Alphabet .
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAmazon Web Services revenue growth will slow down more in 2023, says Satori Fund's NilesDan Niles, Satori Fund founder, joins 'TechCheck' to discuss if things could get uglier in the technology sector, if AWS' growth rate could fall to the high teens and more.
Hedge fund manager Dan Niles said the market is in another bear-market rally and investor sentiment could turn sour again in the new year. Niles believes after the year-end rally, stocks could see more losses as corporate earnings are about to deteriorate. "The problem is you're going to get to the end of this year, and then you're going to have to report numbers and you're going to enter pre-announcement period. "We still believe that after you get sort of this next bear market rally running, it's last gasp, then you go and retest or break to new lows when you get into 2023," Niles said. "Our view is no different that this is just another bear market rally, but trying to take advantage of that things are going pretty well."
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe're playing this market for a rally until the next CPI print, says The Satori Fund's Dan NilesThe Satori Fund Founder Dan Niles joins 'TechCheck' to discuss what the CPI print brings to the table, how influential cryptocurrency movements are to the broader market, and more.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMidterms are good for the short-term, but it's still a bear market, says Satori's Dan NilesDan Niles, The Satori Fund founder, joins 'CNBC: Business on the Ballot' to discuss the positive impact midterm elections have on the stock market.
Watch CNBC’s full interview with The Satori Fund's Dan Niles
  + stars: | 2022-11-08 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC’s full interview with The Satori Fund's Dan NilesDan Niles, The Satori Fund founder, joins 'CNBC: Business on the Ballot' to discuss the positive impact midterm elections have on the stock market.
But with the tech-heavy Nasdaq down more than 30% year-to-date, analysts say there are some bright spots that could offer opportunities to investors. Two stand-out Big Tech names All the major tech stocks declined sharply following the bad earnings reports last week – except for Apple , which saw its stock rise. "For me, the legacy tech companies is a melting ice cube in a lot of ways if you're in the wrong one. Buy the 'right type' of Big Tech stock There are two types of mega tech companies, according to Yoshikami. In comparing the two types of companies, Yoshikami said he likes companies that are not transitioning.
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