A new episode of Money Wise this week dives into a record-setting week on Wall Street, where all three major indexes pushed higher despite political gridlock in Washington – wiith the Dow, S&P 500, and NASDAQ all closing at new all-time highs. Despite the government shutdown stretching toward record length, the markets showed little concern, illustrating that investors remain focused on earnings and fundamentals rather than politics.
The conversation turns to the latest Consumer Price Index (CPI) data, which came in slightly cooler month over month, reaffirming hopes that inflation continues to trend in the right direction. The Money Wise guys debate whether the Federal Reserve’s long-standing 2% inflation target is still realistic, pointing out that historical averages suggest 3% may be a more natural long-term level. They also examine continued challenges in housing, where higher mortgage rates and nervous buyers have led to slower activity, but emphasize that overall consumer sentiment remains surprisingly resilient. The guys also tease an upcoming discussion on gold’s rapid rise and why investors should approach the “shiny metal” with caution despite its strong recent performance.
A Goldilocks Market
A “Goldilocks market” describes an economy that’s not too hot and not too cold, one where growth is steady, inflation is manageable, and the Federal Reserve isn’t under pressure to raise or cut interest rates dramatically. This balance creates an environment that’s often ideal for investors, as companies can grow earnings without the headwinds of high borrowing costs or runaway inflation. In weeks like this, when market data comes in “just right,” it reassures investors that the economy remains stable, supporting confidence and momentum in both stocks and broader market sentiment.
In the second hour, the Money Wise guys explore 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.
