“Patience is a virtue—sometimes the best trade is the one you don’t rush.” On this episode of In the Money with Amber Kanwar, Jimmy Lebenthal, Chief Equity Strategist & Partner at Cerity Partners, makes the case for looking where others aren’t. He explains why patience still wins, how to navigate “parabolic” markets, and why he’s still putting fresh money to work in names like Cisco (CSCO)—a stock he’s owned for over a decade that’s now finding new life in the AI buildout. He also shares lessons from his new book, How to Ride the Subway: Getting Around on Wall Street and in Life, including why sometimes the best strategy is simply staying on the train.
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Here are five things to know:
Hot stepper: Stocks are taking a break from their hot streak this morning. The S&P 500 hit a record high for an 8th session in a row – a win streak we haven’t seen in a year. If the week is positive, it would be the 10th week in a row of gains for the S&P 500 which hasn’t happened since 1985. The TSX buckled under the pressure of weaker gold prices but this morning gold and copper prices are higher which could lift the materials sector. Nvidia’s Jensen Huang is having an impact on the copper market after he said copper wiring will remain key for the AI buildout despite the enthusiasm over fibre optic transmission. Huang is also responsible for the 17% surge in Marvell today saying the chipmaker will be the next trillion dollar company (maybe not next next because its market cap is only $191 billion). He single handedly saved software stocks yesterday and is quickly proving to have the midas touch when it comes to boosting stocks or markets just because he talked about it. What part of the cycle is this? A frothy one notes Bank of America’s Savita Subramanian. She has one of the lowest targets for the S&P 500, just 7,100 and advises investors “sell in June” as sell-side indicators of bullishness reach the highest level since February 2025. While the indicator isn’t at an extreme level, she says it is 4x closer to a sell signal than a buy signal. One of her chief complaints is the narrowness of the market (just 22% of stocks have outperformed the S&P 500 since it bottomed). What about earnings? “Strong 1Q earnings and 2026 revisions provided support for equities, but analysts’ long-term earnings growth expectations are now higher than they have been since early 2022, a more bearish than bullish setup, as stocks are more likely to disappoint than exceed expectations,” she wrote in a note yesterday.
Feeding the ducks: Shares of Alphabet are -3% after raising $80 billion in its first stock sale since 2006 with $10 billion coming from Berkshire Hathaway in order to fund their AI buildout ambitions. This is one of the biggest stock sale in history and comes right before SpaceX and Anthropic which is due to tap over $100 billion from investors. One of the key risks in the market, said Lebenthal on the podcast, is where investors are going to come up with all this money to fund these companies. He guesses it will come out of parabolic type names including semiconductors. Alphabet’s stock sale will happen in phases and over time so the market is not forced to absorb it all at once. This is a company that generated $73 billion in free cash last year but thanks to the $180-190 billion they plan to spend on capex this year alone, they are only expected to generate $19 billion in free cash this year. The stock has doubled over the past year, but you can’t deny the nature of the business is fundamentally changing from asset light and buying back billions in shares to asset heavy and increasing the share count. But all this spending is keeping the US economy humming along. The chart below shows that IT spending as a % of US GDP is the highest on record (h/t Peter Boockvar/Jefferies).
Surge pricing: Shares of HP Enterprise are surging 30% to hit a fresh record on top of a nearly 100% rally so far this year after results shot the lights out thanks to AI server demand. Sales increased 40% while profit was nearly 50% higher than expected. It also boosted its forecast as demand for its servers was off the charts, similar to what we saw from Dell last week although the magnitude of the beat wasn’t as strong. Even with the parabolic move it trades at just 16x earnings. Because memory chip prices have been surging, there were questions about how high demand for servers was going to be but this quarter demonstrated it was inelastic. “Server customers continue absorbing higher DRAM/NAND-driven pricing due to supply scarcity, allowing HPE to protect margins despite elevated memory costs,” wrote Erik Woodring of Morgan Stanley.
Setback: Shares of Abivax are plunging 37% after cancer cases were discovered among patients in a clinical trial of its bowel disease drug. The French biotech says this is not related to the drug, but as an immune suppressant this is a concern for the market because it could be linked to cancer. This was a top idea recently from Stephen Harvey of Sagard Wealth who called the company a clear takeout candidate. “The market always sells first and figures out later. The key question is not whether its approvable, it is,” said Eden Rahim of NextEdge Capital in an email to me this morning. He says the concern is that it will delay approval or come with a black box warning. “So the stock has morphed from a shoo-in buyout candidate, to this cloud of uncertainty hanging over it.”
Don’t call it a comeback: I am running out of time so just want to point out the stealth move in BlackBerry shares almost daily on seemingly no news. The stock is up 140% over the past year and is currently the best performing stock on the TSX in 2026. The gains have come under new CEO John Giamatteo who declared that Blackberry is now a profitable company with growing revenue as a software first business powering technology in automobiles as well as secure communication.
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