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.