In this week’s episode, the Money Wise guys discuss a market pullback as we come down from the “Trump Bump”, what the Fed is saying about interest rates, and the animal spirits of capitalism. First, let’s look at last week’s numbers from Wall Street, which saw the Dow down 1.2%, the S&P 500 down 2.1%, and the NASDAQ down 3.1%. YTD we’re still in the black, with the Dow up 15.3%, the S&P up 23.1%, and the NASDAQ up 24.4%. Was it an attack of the Fed last week? The Money Wise guys discuss how remarks from a current and former Fed Governor impacted the markets last week, as well as why it’s not surprising to have a market pullback as investors come down from the post-election sugar high. They also discuss the wisdom of using a market pullback as a buying opportunity, even at high valuations. We saw some market-friendly numbers released last week with regard to inflation, and the Money Wise guys also discuss what we might expect in 2025, though much is still speculation.

Let’s review the basics of a market pullback since we experienced one last week. A market pullback refers to a brief decline or pause in a generally upward market trend. Investors who are confident the pullback will be brief may use it as a buying opportunity, as the Money Wise guys discuss in this episode. To learn more about what a market pullback means, check out this resource. In the second hour, the Money Wise guys pull back the curtain to share What Wall Street Won’t Tell You. You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at davidsoncap.com, where you can also learn more about the Money Wise guys or take advantage of a portfolio review and analysis with Davidson Capital Management.

In this week’s episode, the Money Wise guys discuss how the markets reacted to the presidential election, including conviction buys, historic spikes, and a level of volume rarelyt seen. First, let’s review the numbers from Wall Street. Last week, the Dow was up 4.6%, the S&P 500 was up 4.7%, and the NASDAQ was up 5.7%. YTD the Dow is up 16.7%, the S&P is up 25.7%, and the NASDAQ is up 28.5%. The Money Wise guys are feeling giddy this week, and and the market seems to feel the same. All three major indices are at all-time highs, and it was the best week for the Dow and S&P in four years. In fact, the day after the election gave us the biggest gains the Dow has seen post-election since 1896 and largest post-election gains for the S&P and the NASDAQ in history. The guys parse through the numbers, discuss the opportunity cost faced by those who chose to sit on the sidelines before the election, and what we saw as far as conviction buying and short covering. For more on what the markets usually look like post-election, check out this resource from The Street.

Since the Money Wise guys mention conviction buying in this episode, let’s dig into what this phenomenon is. Conviction buying is when an investor - in this case many - feels absolutely convinced that they have properly analyzed what a stock or stock index will do, as well as being absolutely convinced that they will make an outstanding gain. In this case, conviction buying refers to all those investors who were hedging their bets prior to the election and have now decided to buy in.

In the second hour, the Money Wise guys share important differences in an RIA vs. Broker discussion. You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at davidsoncap.com, where you can also learn more about the Money Wise guys or take advantage of a portfolio review and analysis with Davidson Capital Management.

The Numbers Don’t Lie on Rising Consumer Costs & Political Talk Ahead of the Election

In this week’s episode of Money Wise, the Money Wise guys discuss economic statistics, rising consumer costs, and why so many investors aren’t ready to deploy capital until after the election. First, let’s begin with a look at last week’s numbers from Wall Street. The Dow was down 0.1%, the S&P 500 was down 1.4%, and the NASDAQ was down 1.5%. YTD all three indices remain in the black, with the Dow up 11.6%, the S&P 500 up 20.1%, and the NASDAQ up 21.5%. October showed a fairly flat month across the board, which may have to do with so many investors waiting to see how the elections will pan out before deploying additional capital. The guys also discuss the recent Microsoft hit, why we saw significant selling last week, and where the sales volume falls in relation to the daily moving average. Last week was also chock-full of economic stats, including the PCE Index. The Money Wise guys discuss the impacts of inflation and how so much in the consumers’ “basket of goods” has gotten more expensive.

Rising Consumer Costs: By The Numbers

The Money Wise guys mention the PCE Price Index in this episode in relation to rising consumer costs. This index measures inflation by tracking the cost of living for households, and it is the Federal Reserve’s preferred measure of prices in the U.S. The Money Wise guys discuss why rising consumer costs may be the reason we are seeing higher than normal early voting, as more voters cast their ballots with their pocketbooks in mind. For more on the PCE Index and rising consumer costs, check out this resource.

In the second hour, the Money Wise guys share important warnings about Equity Index Annuities. You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at davidsoncap.com, where you can also learn more about the Money Wise guys or take advantage of a portfolio review and analysis with Davidson Capital Management.