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.
Market Divergence
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.
