Following the Donald Trump administration's announcement of an Iran peace deal, financial markets are bracing for a massive boost. FedWatch Advisors founder Ben Emons says the reopening of the Strait of Hormuz will trigger a "relief rally" that will unlock global economic recovery, and he's flagging four specific "cheap" non-tech stocks for investors to buy now.

The Geopolitical Impact & Relief Rally

The resolution of the conflict brings economic benefits, primarily by resolving severe bottlenecks in the Strait of Hormuz. For months, global supply chains faced critical shortages of oil, fertilizer, helium, and aluminum.

Emons notes that normalizing the flow of these commodities prevented significant shortages that were only a few weeks away from hitting the market. "I think it's a true relief rally," Emons explained in a podcast with Phil Rosen.

"We're priced in a full reopening of the Strait… And then that means probably somewhat lower energy prices, lower inflation, maybe less of multipolicy tightening."

Emons calculated that gas prices could drop by a dollar over the next couple of months, which would significantly ignite consumer spending leading into the fall. He characterizes the end of the conflict as a "bullish" development and a "V-shaped opportunity for markets."

4 Value Plays Beyond Tech

While the AI trade has dominated recent market action, Emons is turning his attention to non-tech sectors that will benefit directly from the ceasefire, domestic production policies, and the resulting economic boost. Emons argues that current levels for these companies are "cheap."

Emons points to four standout stocks insulated from potential midterm election volatility:

• Goldman Sachs Group Inc. (GS): Emons views Goldman as the top player in the financial sector, perfectly positioned to capitalize on a reviving IPO and M&A cycle. He praises their unique ability to warehouse risk, noting "they have it together" when managing through market cycles.
• Citigroup Inc. (C): Described as a "really good value play," Citi is bouncing back after years of restructuring and offers better positioning in consumer banking.
• General Electric Co. (GE): The industrial giant is heavily favored by the administration's shift toward domestic production and aerospace.
• Lockheed Martin Corp. (LMT): Driven by government-backed investments and an expanding space race.

The Parabolic AI Landscape

While Emons favors non-tech value plays for the ceasefire recovery, he emphasizes that the booming AI trade is entirely separate from Fed policy and remains a critical growth engine. He highlighted a new tier of tech winners—dubbed the "parabolic 7"—which includes names like Micron Technology Inc. (MU) and Intel Corp. (INTC).

Despite their massive runs, Emons argues that massive influxes of global capital make their forward multiples look "cheap relative to even Nvidia Corp. (NVDA)."

"Investors should buy these stocks," Emons stated, noting that the investment boom driving earnings growth is just getting started. "It's not too late."

Stock Performance Of Emons' Top 4 Picks

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by MarketDash editors.