This week’s show kicks off with a rapid-fire review of last week’s numbers from Wall Street so let’s jump right in. The Dow was up 0.6%, the S&P 500 was up 0.6%, and the NASDAQ - which has outperformed both the Dow and the S&P this quarter - was up 1.0%. YTD we see the Dow up 12.3%, the S&P 500 up 20.3%, and the NASDAQ up 20.7%. It’s been a September to remember, since this time of year doesn’t typically give us a positive month, especially for the Dow. The Money Wise guys admit their surprise and discuss which Fed moves may be helping the markets. Will this rally last in the long term? We simply don’t know yet. However, we seem to be at very high valuations these days, and the Money Wise guys practiced prudence in the month of September.

Let’s discuss the market valuations aspect of what we’ve been seeing. We’ve been running above the 5- and 10-year averages from a historic perspective, and being overvalued can make many investors nervous. However, let’s dig into current market valuations a bit deeper. Extrapolating the statistics and removing the Magnificent 7 from the market-cap weighted S&P 500, we see that the market is nowhere near overvalued. In fact, market valuations are below the 5- and 10-year averages. So, we continue to see how the Magnificent 7 is skewing the market valuations of the S&P when you look at valuation in totality.

In the second hour today, the Money Wise guys discuss 401(k) rollovers. 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.

To kick off this week’s episode, the Money Wise guys report strong market performance for the past week, with the Dow Jones Industrial Average up 670 points (1.6%), the S&P 500 up 77 points (1.4%), and the NASDAQ rising by 264 points (1.5%). Year-to-date, both the S&P 500 and NASDAQ are up 19.6%, with the Dow up 11.6%. They discuss how, with only six trading days left in the third quarter, the Dow has outperformed the NASDAQ, signaling a shift away from tech stocks toward broader market participation. The Money Wise guys also focus on the Federal Reserve's unexpected decision to cut interest rates by 0.5% instead of the anticipated 0.25%. They admit they were surprised by the larger cut, noting it felt like the Fed was correcting a missed opportunity from July. They express concerns about the optics of the Fed’s move so close to the election, potentially undermining its bipartisan image. The Money Wise guys also speculate that no further rate cuts would likely occur until after the presidential election, despite strong market reactions following the rate cut. Additionally, they note similarities between the Fed’s action and the European Central Bank's earlier rate cut of 0.5%, drawing parallels between the two institutions.

This quarter, the Dow outperformed the NASDAQ, with the Dow up 7.5% compared to the NASDAQ's modest 1.2% gain. This shift in performance is significant because it signals a broader market rally, moving away from the tech-heavy focus that has dominated the NASDAQ in recent years. Investors appear to be rotating out of high-growth tech stocks and into more stable, blue-chip companies that make up the Dow, which suggests a healthier, more diversified market environment. This shift indicates that investors are seeking more balanced opportunities, reducing reliance on a few dominant tech companies, and positioning portfolios to benefit from a wider range of sectors.

In the second hour today, the Money Wise guys discuss RIA vs. Broker. 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.

After a week off the Money Wise guys are back in the studio kicking things off with a recap of last week’s numbers. The Dow Jones Industrial Average rose by 1,048 points (2.6%), the S&P 500 gained 218 points (4%), and the NASDAQ surged by 993 points (6%). Year-to-date, the Dow is up 9.8%, the S&P 500 is up 18%, and the NASDAQ is up 17.8%. The guys note that this strong rally came after a period of market correction, particularly in the NASDAQ. Despite September historically being a volatile month, this past week saw a significant rebound, with the NASDAQ posting its best week of the year.

The Money Wise guys discuss recent economic data, such as the Consumer Price Index (CPI) and Producer Price Index (PPI), both of which came in line with expectations. They also highlight positive retail numbers and a dip in unemployment. Additionally, there was debate around the Federal Reserve's expected interest rate cut next week, with some market professionals suggesting a 0.5% cut instead of the anticipated 0.25%. The Money Wise guys generally agree that a 0.25% cut would be more prudent, given that inflation is cooling and the economy is still showing signs of strength. They also point out that the S&P 500 is nearing a crucial technical level and needs to break through and close above 5,670 to maintain its upward momentum.

The Federal Reserve is expected to implement its first interest rate cut in a significant period, with speculation around whether the reduction will be 0.25% or a more aggressive 0.5%. Most analysts and market professionals are anticipating a 0.25% cut, as recent economic data, including positive retail numbers and cooling inflation, suggest the economy remains relatively stable. A 0.25% cut is seen as a cautious and measured approach, aimed at supporting continued growth without overstimulating the market. However, some market professionals have argued for a 0.5% cut, believing a larger reduction would more effectively boost economic activity. The Money Wise guys express concerns that a larger cut could signal too much concern about the economy and might trigger an adverse reaction from the market.

In the second hour today, the Money Wise guys discuss 401(k) Rollovers. 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 Money Wise guys are back after a long weekend kicking off the show with a report of last week’s market numbers. They report that the Dow Jones Industrial Average gained 388 points (0.9%), the S&P 500 rose by 14 points (0.2%), and the NASDAQ dropped 164 points (0.9%). Year-to-date, the Dow is up 10.3%, the S&P 500 is up 18.4%, and the NASDAQ is up 18%. The Money Wise guys discuss the strong performance of the Dow, which closed at an all-time high on Friday, compared to the NASDAQ's slower recovery, with the NASDAQ still over 5% away from its all-time high. They point out a divergence in performance, with the Dow outperforming the NASDAQ by 6% quarter-to-date, indicating a shift in investor interest away from the top-performing tech stocks that have dominated the NASDAQ.

The Money Wise guys also review NVIDIA’s recent earnings report, noting that despite solid revenue growth of over 100% year-over-year, the stock didn't generate much excitement in the market. They suggest that Wall Street's expectations for the company might be overly high and emphasize that NVIDIA’s fundamentals remain strong. Additionally, they highlight the narrowing performance gap between the market cap-weighted S&P 500 and the equally weighted S&P 500 index, indicating a healthier, more balanced market. They also reiterate the importance of diversification, advising listeners to keep no more than 5% of their investable net worth in any single stock, including NVIDIA.

This week the guys discuss the growing market divergence between the Dow and NASDAQ, noting the Dow’s strong performance, including reaching an all-time high, while the NASDAQ has struggled to recover and remains over 5% below its peak. This widening gap suggests a shift in investor sentiment away from tech-heavy stocks, which have led the market in recent years, toward more traditional, blue-chip companies that dominate the Dow. For investors, this could signal a broader market rally and a healthier, more diversified investment environment. It highlights the importance of balancing portfolios, as relying heavily on tech stocks could expose investors to increased risk if the NASDAQ continues to underperform.

In the second hour today, the Money Wise guys discuss the 5 Things Every Retirement Portfolio Should Have. 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 of Money Wise, the show kicks off with a review of last week’s numbers out of Wall Street. The Dow Jones Industrial Average rose by 515 points (1.3%), the S&P 500 gained 80 points (1.4%), and the NASDAQ climbed 246 points (1.4%). Year-to-date, the Dow is up 9.2%, the S&P 500 is up 18.1%, and the NASDAQ is up 19.1%. The Money Wise guys discuss the anticipated interest rate cuts by the Federal Reserve, with Chair Jerome Powell signaling a potential 0.25% reduction at the Jackson Hole symposium, which boosted market confidence. They noted that the market tends to rally when there is clarity, and Powell’s dovish tone provided much-needed certainty.

The Money Wise guys also talk about how falling interest rates could impact the housing market, with mortgage rates starting to come down. However, they emphasize that while the first rate cut might signal improvement, the real estate market likely won’t see a surge in activity immediately due to seasonality and uncertainty surrounding the upcoming presidential election. They also highlight that, historically, fall and winter are slower periods for home sales, and many potential buyers and sellers may wait for further rate cuts before making decisions. The Money Wise guys then move on to a discussion of the Federal Reserve’s success in potentially guiding the economy toward a "soft landing," although revisions in past employment data raised some doubts about the strength of the recovery.

Falling interest rates can have a significant impact on the housing market by making borrowing more affordable for homebuyers. As mortgage rates decrease, monthly payments become lower, which can make homes more accessible to a broader range of buyers. This often leads to an increase in demand for homes and can stimulate the housing market. However, the effect might not be immediate, especially during slower seasons like fall and winter, when fewer people are looking to buy or sell. Additionally, uncertainty around factors like upcoming elections may cause some buyers and sellers to wait for more stability before entering the market.

In the second hour today, the Money Wise guys share the key Retiree Spending Rules you should be following. 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.

As they kick off every week of Money Wise, the guys begin this week’s episode with a recap of a strong week for the markets, with the Dow Jones Industrial Average gaining 1,162 points (2.9%), the S&P 500 rising by 210 points (3.9%), and the NASDAQ up 886 points (5.3%). Year-to-date, the Dow is up 7.9%, the S&P 500 is up 16.4%, and the NASDAQ is up 17.5%. The Money Wise guys discuss how the market has made a complete recovery from the downturn that started in early August, with market sentiment quickly shifting from fear of a hard landing to optimism about a soft landing for the economy. The volatility index (VIX), which measures fear in the market, had spiked dramatically but has since calmed down as economic data improved.

The conversation continues on to highlight several key turning points, including better-than-expected initial jobless claims and positive inflation data, particularly with the Consumer Price Index (CPI) showing the lowest year-over-year inflation in three years. The hosts believe that this improvement in economic indicators, along with more favorable Producer Price Index (PPI) numbers, helps alleviate fears of a recession or hard landing. The Money Wise guys also discuss how the Federal Reserve is now expected to implement a more modest interest rate cut, possibly 0.25%, rather than the more drastic cuts previously speculated. Overall, they comment that the market's response to the improved data has been positive, driving the strong performance seen throughout the past week.

The Volatility Index, commonly referred to as the VIX, is a key measure of market sentiment that tracks expected market volatility over the next 30 days. Often called the "fear gauge," it rises when investors anticipate higher risk or uncertainty and falls when confidence in the market is stronger. Right now, the VIX is particularly pertinent because recent spikes reflected heightened fear of a potential economic downturn or market correction. However, as economic data has improved, such as better-than-expected jobless claims and easing inflation, the VIX has calmed down, signaling a more optimistic outlook among investors. This reduction in fear has contributed to the recent market rebound.

In the second hour today, the Money Wise guys discuss 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.

In this week's episode of Money Wise, we kick off with a recap of the market's performance, noting that the Dow Jones Industrial Average fell by 240 points (0.6%), the S&P 500 remained nearly flat with a slight decline of two points, and the NASDAQ was down 31 points (0.2%). Despite the relatively modest changes for the week, the Money Wise guys discuss the dramatic market movement on Monday, which saw the Dow drop as much as 1,200 points in a short period before partially recovering. This sharp decline, the worst since 2022, set the tone for the week and prompted a broader discussion on market seasonality and the long-overdue corrective move that the hosts had been anticipating.

The conversation takes a critical turn when the Money Wise guys express frustration with the media's coverage of the market downturn, particularly conservative outlets like Fox News. They argue that the media incorrectly attributed the market's decline to political factors, specifically blaming President Biden and Vice President Harris, when in reality, the sell-off had nothing to do with politics. Instead, the Money Wise guys emphasize that the market's reaction was part of a natural corrective process, unrelated to any fundamental changes in the companies within the broader stock market. They stress the importance of educating investors about the real causes of market movements, rather than stirring up emotions with political rhetoric, and use this week to delve deeper into the actual reasons behind the market's behavior.

Market seasonality refers to the predictable patterns and trends that occur at certain times of the year, often influenced by historical data, economic cycles, and investor behavior. Currently, market seasonality is at play as we enter a period typically characterized by increased volatility and potential corrections. Historically, the late summer months, particularly August and September, tend to be weaker for the stock market, as investors reassess their portfolios and respond to economic data and earnings reports. This seasonal effect is contributing to the recent market fluctuations and the anticipated corrective move that has been unfolding in recent weeks. Understanding these patterns can help investors navigate the market with greater awareness and preparedness.

In the second hour today, the Money Wise guys share The Best Investment Advice Ever. 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 of Money Wise, the Money Wise guys begin with a review of the latest market performance, noting that the Dow Jones Industrial Average fell by 852 points (2.1%), the S&P 500 dropped by 113 points (2.1%), and the NASDAQ decreased by 582 points (3.4%). Despite these declines, the year-to-date figures remain positive, with the Dow up 5.4%, the S&P 500 up 12.1%, and the NASDAQ up 11.8%. The guys reflect on their recent warnings about a potential market correction, which seemed to materialize last week, particularly with significant sell-offs on Thursday and Friday. The sentiment in the market had been positive mid-week following a Federal Reserve announcement, with optimism about a potential rate cut in September. However, by the end of the week, concerns about the Fed's clarity and economic health reversed this optimism, leading to the sharp declines.

The discussion also focuses on the impact of recent earnings reports from major tech companies, highlighting the volatility these announcements can trigger. For instance, while Apple saw a slight increase after its earnings report, Microsoft and Intel experienced substantial declines, with Intel's stock dropping dramatically by 25-30% on Friday. The Money Wise guys debate whether this pullback signals a larger market downturn or simply a temporary pause, with one suggesting it is a "pause that refreshes," akin to a necessary rest while climbing a mountain. They also emphasize the importance of such corrections in maintaining a healthy bull market.

Earnings reports can significantly impact the stock market as they provide key insights into a company's financial health and future prospects. Released quarterly, these reports include crucial information such as revenues, profits, and earnings per share (EPS). When a company surpasses analysts' expectations, its stock price typically rises as investor confidence grows. Conversely, if the company falls short, its stock price may decline due to disappointment and uncertainty. Positive earnings can boost overall market sentiment, leading to increased buying activity across the market, while negative reports can have the opposite effect, contributing to market volatility. Additionally, forward guidance provided in these reports shapes investor expectations about the company's future performance, further influencing stock prices and market dynamics.

In the second hour today, the Money Wise guys discuss the 10 Retirement Myths. 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.