In this week’s episode, the Money Wise guys discuss Nvidia’s addition to the Dow, what will continue to fuel the current bull market, and last week’s numbers from Wall Street. The Dow was up 2.0%, the S&P 500 was up 1.7%, and the NASDAQ was up 1.7%. YTD the Dow is up 17.5%, the S&P 500 is up 25.1%, and the NASDAQ is up 26.6%. The guys begin the show by discussing Nvidia’s (NVDA) recent addition to the Dow and how it is likely to help keep the Dow more in line with the other major indexes. Nvidia earnings also came out last week, and the Money Wise guys discuss what happens if the company can’t fulfill demand in the way the market expects. They dig further into Nvidia’s performance in recent years, discussing how you’d likely have to go back to the dot-com era to find another company that has gone this far this fast - and after being completely unloved by Wall Street before the AI boom, too. The guys also discuss trends in market breadth and what will continue to fuel the bull market.

In this episode, the Money Wise guys spend time discussing how the Dow has differed historically from the other major indexes. They discuss the differences in an index being price-weighted, like the Dow, and market-cap weighted, like the S&P. They also share why the addition of Nvidia should make the Dow more competitive with the other major indexes. For more on Nvidia replacing Intel in the Dow, check out resources here and here.

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 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.