A Narrowly Missed Record, Algorithmic Trading & 5 Things Every Portfolio Should Have

A Narrowly Missed Record for the Dow & The Impact of Algorithmic Trading

The Money Wise guys are back at it for another week of wise investment discussion- and wise-cracking, too! They start with a look at last week’s numbers from Wall Street, which showed the Dow up 0.7%, the S&P 500 up 1.0%, and the NASDAQ up 2.0%. YTD all three indices remain up, as well, with the Dow up 7.0%, the S&P up 19.3%, and the NASDAQ up 36.8%. We had another attack of the Fridays, after a reversal of the market’s fortunes on Thursday. Though the markets pulled out on Friday to end the week on a positive note, the Dow narrowly missed setting a record that has held since 1897. The Money Wise guys review the first half of 2023, revisiting the NASDAQ’s tremendous gains, the Fed raising rates in four different months – to the highest Fed funds rate in 22 years – and so much more. They also touch on the impact of algorithmic trading, coupled with lower volume and participation, and how it can lead to more volatility.

What is Algorithmic Trading?

In this episode, the Money Wise guys dig into algorithmic trading and what it means when machines are controlling whether the market is buying or selling. Essentially, algorithmic trading means one small data point can trigger the market algorithms to become more volatile. To learn more about the advantages and disadvantages algorithmic trading brings to the table, check out this resource from the Corporate Finance Institute.

In the second hour, the Money Wise guys discuss Five Things Every 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.****