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.