Show and guest
On Schwab Network, Drew Pettit, chief investment strategist at Roundhill Investments, discusses October CPI and the Nvidia investigation. Original English title: Drew Pettit on Hot October CPI, NVDA Investigation, AI Opportunities Ahead.
Key takeaways
- CPI and Waller’s remarks ended the “Goldilocks + rate cuts” narrative. Small caps initially rose in morning trading, then gave back most of the gains; a rising-rate environment is most unfavorable for small caps. 0:38
- The market is oversold but not cheap. Last Thursday’s low had priced in the bear case (earnings expectations cut by 10% for the next five years), but growth expectations remain high, and this quarter’s earnings reports are “frankly pretty mediocre.” 1:29
- Nvidia is a new ESG risk around “AI espionage, security and guardrails.” Investigations, the FBI and congressional hearings will continue for months. For now, AI is a “show me” story, and AMD and Broadcom have already benefited. 2:29
- Tactically, don’t dump AI exposure outright: rebalance into sharp rallies and add on sharp selloffs. Allocate 5% to high-beta areas such as memory, photonics and new cloud, and pair it with asset-heavy stocks as a hedge. 4:00
- 50 basis points “would be a little weird”; 25 basis points is fine. A 10-year yield of 5.3% is a level fundamentals can handle (currently 4.94%). A Christmas rally needs two catalysts: an Anthropic IPO and Micron’s earnings report in mid-December. 5:30
Background and notes
Drew Pettit discusses October CPI, Waller’s remarks and the Nvidia investigation on Schwab Network, and offers tactical advice on trading AI. Subtitle coverage note: the video has 218 timestamped subtitle segments, covering 0:00–6:53 (total length 6:53), with full-video coverage. Views and timestamps in this article are based on the original subtitles; each timestamp marks the start of the corresponding spoken segment. Publication-time note: the publication time was approximately 08:10 on 2026-11-11 Hong Kong time, converted from the relative time shown by YouTube when retrieved, with hour-level precision.