Aadil Zaman on Market Execution, Tariffs, and Costco Stock Pick

Market Shift to Execution

• 🎯 The market has shifted from rewarding promise and expectation to favoring execution in 2026.
• 💡 Policy changes like low taxes and rates were factored in during 2025, leading to a more stable macro backdrop.
• ⚠️ Companies that deliver on execution will be rewarded, while those that fall short will be punished.

Tariffs and Market Volatility

• 📈 Approximately 25% of people on Koshi believe the Supreme Court will uphold the president's tariffs.
• ⚡ A potential striking down of tariffs could create additional volatility in the market.
• 📊 Wells Fargo research suggests consumer staples and industrials could see a 6% jump in profitability if tariffs are struck down.

Costco as a Top Pick

• 🛒 Costco is highlighted as a company expected to perform very well, especially given the current consumer landscape.
• 💰 The potential striking down of tariffs could increase Costco's profitability in the short term due to its significant holdings in consumer staples.
• 📈 Costco underperformed last year, but is expected to benefit significantly this year.

Jobs Report and Macro Outlook

• 📊 Expectations for the upcoming jobs report suggest a slight improvement.
• ✅ The jobs report is anticipated to affirm the thesis of a relatively stable market environment on a macro level.
• ⚠️ The market is currently priced for perfection, trading at 22-23 times forward earnings, making it susceptible to pullbacks.