What's up guys? I'm sitting down with Lou Bassonies today. He is a veteran market strategist and the

founder of the Big Skinny. We get into his four favorite stock picks right now, why he's so bullish

on the energy sector and biotech and much more. I think you're going to love this conversation.

Lou, I want to get right into the energy sector. It's been the top performing sector of the year.

And now there's a lot of sort of divided views on it because we have oil pulling back, but a lot of people are still bullish. Where do you fall on this? I'm still bullish. I mean, I was wildly bullish about a year ago, and that was a very contrarian stance. But look, I look at it. It was such an obvious trade a year ago because the sector

was trading it like 13 times forward earnings, super cheap, super low allocation in the SVP 500.

It was bound to just catch up eventually. Now, with higher oil prices, I think there's a point

that most people are missing. Energy sector took off as it should on the war in Iran, oil prices

ramping higher.

Just because oil prices are coming down, though, that doesn't mean the profitability of these

oil companies is going to change. In fact, even though the valuations have gone up, they're

using this one-time spike in oil to really improve their bottom line. They're not taking

that excess profits and drilling more. So you're going to see a lot of it hit the bottom line of these E&P companies that you wouldn't anticipate.

You know, the president's out pushing drill baby drill.

And the operators are like, no, not yet because we need to see sustained prices over 70 in which we just haven't seen that for a period of like a quarter or two.

So I think you're going to see a surprise in the

first and second quarter as all of these companies report better than expected earnings. And

the sector as a whole is just not overvalued. It's now at about 19 times forward earnings. So right

in line with the market, you know, maybe about a three and a half percent allocation in the SP 500.

I think we can still go another 15, 20 percent higher from here.

So I think it's still a great setup. If you don't know anything about the space, I still think

you play it with ETFs. The XLE is the easiest way to do it. It's a momentum trade that I think

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