Luis Strohmeier, Octavia Wealth Advisors Partner and Wealth Advisor joins the Yahoo Finance Live panel to discuss the latest in markets.
ZACK GUZMAN: Welcome back to Yahoo Finance Live. It's been a very interesting year here so far in 2021. And as of right now here in the summer, seems like investors have finally caught on and bought into the idea that the Fed's transitory inflation take seems to be proving out, as we've seen the VIX kind of come back down in this rotation, now back into the growth sector of the market. Could carry us, only about a 7-point differential between where we're at in the S&P 500 and the last record high.
And our next guest says we could get back to those levels in short order. Want to bring on Luis Strohmeier here, Octavia Wealth Advisors Partner and Wealth Advisor joins us once again. And Luis, good to be chatting with you again today. When we look at it, though, I guess you're not alone. We saw Fundstrat come back and also call for growth in these growth names, big tech. Talk to me about what you're seeing there and some of the picks you like to take us back to all-time highs.
LUIS STROHMEIER: Of course, Zack. Thank you for having me back. Certainly it's quite interesting, the rotation. You know, late last year, right after the election, value was kind of the name. And growth stocks, specifically big tech, was a little bit forgotten. Then all of a sudden, just about 30 days ago we see some of the lows, some of the correction, some cloud-based stocks were down about 30%. And even the big names, Amazon and Apple, Google, they were down about 10%, 14%. And it wasn't surprising to us to see the appetite and, again, that sequential rotation into high growth stocks again.
And what we see is I think earnings coming out next month, and I think it certainly is going to be, I don't think there are going to be many surprises. I think expectations will be met for most of these stocks in high growth area. So I think they are going to go higher, in my opinion.
AKIKO FUJITA: Let's single out one of those stocks there, Amazon, only because we have been talking about it a lot on this show today, with what is playing out over in Washington. You've got this move to try and unionize Amazon workers now, a potential resolution being voted on tomorrow. How do you weigh the growth potential, which is clearly demonstrated during Prime Day, and then the real regulatory headwinds that look like are gaining a little more momentum?
LUIS STROHMEIER: Yeah. It is very natural for a company the size of Amazon to go through these kind of trials and tribulations. And I think it's normal. What's going to happen is anybody's guess. We can pinpoint really of something that will happen. I mean, there's been anti-trust lawsuits with Google in the past, and we know what happened there.
So you know, I think that Amazon being targeted, and maybe to some sense, making it a better business in general than it already is. But the same thing kind of happened to Walmart a few years back. And the stock did retreat during those times. I think we've seen a little bit of that downward pressure on Amazon over the last several months.
But I think the company will rise and will get through this, as it's coming out. I don't see this as being a heavier-- it is some headwinds, but I don't think it's going to be enough to derail the stock. And I do see the stock probably within 12 months above $4,000.
ZACK GUZMAN: Yeah. And I'd be curious, I mean, it doesn't sound like a lot of our guests who are still pro growth here are necessarily saying ditch value altogether. And one of the names in your list is an interesting kind of play on both sides. You got Airbnb as one you like as well. But a lot of people are talking about prices going up when it comes to Airbnb, and maybe more value on the hotel side too. Talk to me about why you like Airbnb despite that.
LUIS STROHMEIER: Yeah. Airbnb, obviously recent IPO and the stock is flying. Certainly, and there's an element, when you think about, there's somewhere around one in four Americans still is a little bit touchy about social distancing and so forth. And I think for those travelers, if you take one in four, maybe it could be two in four, for that matter, if you take those travelers, probably not going to go with the big chains, big hotels and so forth. They may want to have something a little bit more private, a little bit more secluded, still do the traveling. And I think Airbnb is a good solution for them.
So I think last year we were very high on Marriott as a chain. And I think it's paid handsomely for our clients when we bought into Marriott, I think early last summer. So I think Airbnb is a new stock. Certainly I think there's a lot of growth in that sector. And I think we have to think about just not just the US but think about international opportunities for the company.
ZACK GUZMAN: Yeah. And there's a lot of those names too. I mean, Airbnb was up more than 50% at one point after its IPO, now up less than 10%. So still opportunities in some of those names that retreated earlier on this year in that big collapse in the tech space.
But Luis Strohmeier, Octavia Wealth Advisors Partner and Wealth Advisor, appreciate you highlighting a few opportunities there.