‘You can't keep track': Infrastructure Capital Management CIO on the market's explosive rally

• S&P 500 target raised to 8,850, based on increased earnings estimates for 2027, not multiple expansion.
• Sees falling inflation due to shelter costs and annualized tariffs, expecting Fed cuts within 12 months if oil stabilizes.
• Recommends semiconductor stocks (AMD, MRVL) due to strong demand, energy stocks (ET, LNG) for low multiples and high yields, and Lockheed Martin (LMT) as a low-beta defense play.
• Biggest anxiety is ongoing geopolitical conflicts and their potential impact on energy prices.

Jay Hatfield, CIO of Infrastructure Capital Management, discusses raising his S&P 500 target to 8,850, driven by strong earnings estimates for 2027. He highlights falling inflation (excluding oil) and potential Fed cuts as positive factors, while recommending semiconductor, energy, and defense stocks. His primary concern remains ongoing geopolitical conflicts.