Heightened geopolitical tensions and a sharp sell-off have rattled investors, but some see the volatility as a continuation of a broader rotation rather than a warning sign. Shifting leadership and improving participation across sectors are emerging as key themes.
BNN Bloomberg spoke with Eddie Ghabour, CEO of Key Advisors Wealth Management, who said economically sensitive areas are gaining momentum as investors rotate away from mega-cap technology and prepare for a more challenging period ahead for AI-driven stocks.
Key Takeaways
- The recent sell-off is being viewed as an opportunity within a strong first-quarter setup rather than a shift to risk aversion.
- Leadership is rotating away from mega-cap technology toward small caps and economically sensitive sectors such as housing, industrials and financials.
- Technology stocks could see a blow-off top before a more difficult second quarter, prompting caution around concentrated AI exposure.
- Market participation has broadened, signalling strength beyond a narrow group of dominant tech names.
- Crypto assets may be forming a short-term bottom but are expected to remain closely tied to technology-driven moves.
Read the full transcript below:
ANDREW: Market volatility today, a sell-off in stocks tied to the confrontation over Greenland. Our guest says volatility is an opportunity for investors. Let’s bring in Eddie Ghabour, CEO of Key Advisors Wealth Management. Eddie, thank you very much indeed. We’ve been exploring this theme already. Often, these geopolitical events drive stocks lower, but later turn out to have created an opportunity.
EDDIE: We think this time is no different. One thing we’ve learned from these tariff threats is that many times they’re just threats. We learned a valuable lesson last year in the U.S. markets, and this year is much different than last year. Markets came into today’s events very strong. So the fact that we have this big drop early this morning, I think, is a real opportunity. Frankly, I think by the end of this week it will not only have been reversed, but we’ll be in the green. We look at today as a buying opportunity because the setup here in the first quarter for markets is as strong as we’ve seen in decades.
In terms of the economy, we want to be in economically sensitive areas and underweight the AI trade. We think the rotation is real because we think growth in the economy is going to accelerate to the upside. So we’re looking at this volatility as your friend today.
ANDREW: What would you recommend to investors? Are there particular areas that you think are offering opportunities right now?
EDDIE: There are. Small caps are our favourite play right now. We use ETFs to follow the small caps. We also like housing. There’s been a big commitment to housing, and we’ve seen mortgage rates come down by nearly 100 basis points. Today rates are up, so we’ll see how that plays out. We also like industrials and financials. Those four areas, we think, will outperform technology as well as the broader market.
ANDREW: You think there’s a clear rotation under way away from the Magnificent Seven?
EDDIE: I do. The Magnificent Seven stocks are getting weaker and weaker. There’s so much money in those names that that’s where it has to get sold in order to rotate into these other areas. For investors, now’s the time to be very active, not passive, in portfolios, and not to look at this rotation as a head fake. We don’t believe it’s a head fake at all, and the market is telling us that. When you look at the difference in performance between small caps and the Magnificent Seven over the past couple of weeks, that’s real outperformance, and we think that trend will continue.
ANDREW: Nevertheless, you do see opportunities in some of the Magnificent Seven stocks, including Tesla.
EDDIE: Yes. Tesla is one of our favourite Magnificent Seven names because we believe there’s going to be a blow-off top at some point. Tesla, to us, is an AI trade, and we think it will get a lot of momentum. We think that stock hits new highs by the end of February.
ANDREW: By the end of February. In the meantime, could we get a blow-off top and then a big sell-off in tech?
EDDIE: We think we’re going to get a top in technology toward the end of February or sometime in March. We think the second quarter will be very challenging for technology, but before that big correction you’ll get a blow-off top with new highs. Names like Tesla will have the most momentum, in our opinion. You have to be very cautious about getting too excited and too concentrated in the AI trade going into the second quarter. Economically sensitive areas, though, are different. We’re not concerned there. We think those will continue to show strength and momentum.
ANDREW: And very quickly, Apple. Would you put new money to work there right now?
EDDIE: We came into this year bullish on Apple, and we’ve been very disappointed in the momentum so far. We still own it, but we wouldn’t be buying it right now. We want to see what happens on the earnings call, particularly around iPhone sales acceleration. If we’re disappointed, we’ll probably cut that position to some degree. We’ve been wrong on it so far in 2026, but we’re not giving up on it yet.
ANDREW: You’ve mentioned a higher-risk play tied to a housing recovery in the U.S., RH, better known as Restoration Hardware.
EDDIE: Yes. That name has been really beaten up, just like housing over the past three years. Housing has significantly underperformed, and we’re extremely bullish on it. This is a more aggressive way to play housing. We think RH has strong management and tends to thrive when the economy and housing are accelerating, which we think is coming. On days like today, we would add to housing and housing-related stocks rather than technology.
ANDREW: What about crypto markets? Do you see an opportunity there? Are they bottoming?
EDDIE: We do. We find it hard to believe the broader market accelerates in the first quarter and crypto doesn’t participate. Crypto has a strong tendency to follow technology, so it’s not a surprise it’s been sideways to lower. We do think it’s bottoming and expect it to perform well over the next 60 days. But when we get the sell-off in technology we expect in the second quarter, we would also expect crypto to lead on the downside. So this is a trade, not a six- to 12-month hold right now.
ANDREW: We’d better leave it there. Eddie, thank you very much for joining us.
EDDIE: Thank you for having me.
ANDREW: Eddie Ghabour, CEO of Key Advisors Wealth Management.
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This BNN Bloomberg summary and transcript of the Jan. 20, 2026 interview with Eddie Ghabour are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
