In a recent discussion on Fox Business’s “Making Money,” Vertical Research Advisory managing partner Kip Herriage shared his optimistic outlook on the market and specific stocks, notably GameStop (GME). Addressing the broader market, Herriage highlighted the structural bull market’s strength, underpinned by robust consumer net worth and historically low corporate debt levels. Despite some sectors underperforming, he argued that the market is in the process of broadening, suggesting that an internal correction does not undermine the overall bullish trend.
Herriage predicted that the next year could be even more significant than the previous ones, potentially seeing market gains of 35% to 50%, driven by the so-called “animal spirits” and the shift in investor sentiment following the 2024 presidential election. He noted the substantial amount of money still on the sidelines, ready to enter the market under the new administration.
When questioned about his investment strategy, particularly with leveraged ETFs like SOXL, Herriage emphasized their role as trading vehicles rather than long-term holds. He expressed confidence in the semiconductor sector, suggesting that despite recent corrections, semiconductors would continue to lead the market higher.
Turning to specific stocks, Herriage was particularly bullish on GameStop. He predicted that GameStop’s stock could reach $50 as a first target and potentially exceed $100, attributing this potential growth to what he describes as “financial engineering.” He praised GameStop’s CEO, Ryan Cohen, for his strategic vision, drawing a comparison to Michael Saylor‘s approach at MicroStrategy (MSTR), implying that similar strategic moves could propel GameStop’s valuation even further.
Regarding NuScale Power Corp. (SMR), Herriage sees it as a potential “10 bagger,” indicating a stock that could increase in value tenfold. He underscored the company’s leadership in the burgeoning field of nuclear energy, with several projects already approved and installations underway, positioning SMR to significantly influence the global energy sector.
Herriage’s commentary reflects a confident, aggressive investment strategy, emphasizing the potential in companies and sectors that align with broader market trends and pioneering technological or strategic shifts. His insights suggest a landscape where understanding and leveraging these trends could lead to substantial investment returns.
Disclaimer: The information provided is for informational purposes only and does not constitute financial, investment, or trading advice. Trading stocks/crypto involves significant risk, and past performance is not indicative of future results. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.
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