Q1 in Review, A Possible Reflex Rally & Registered Investment Advisor vs. Broker

Q1 in Review & A Possible Reflex Rally for the NASDAQ

The Money Wise guys are back in the studio after a week off, and there’s much to discuss. First, they dig into last week’s numbers from Wall Street: The Dow was up slightly, the S&P 500 was down a bit but near-flat, and the NASDAQ was down. Year-To-Date, the Dow is up 1%, the S&P 500 is up 6.9%, and the NASDAQ is up 15.5%. The guys also review the Q1 numbers, which show the Dow up slightly, the S&P 500 up 7%, and the NASDAQ up just shy of 17%. It’s been some time since the NASDAQ was up that much, and the guys talk about what’s driving this movement. They discuss whether it was a reflex rally, overdue belt-tightening, or gains made by several tech names associated with AI that are driving up the entire index from a valuation viewpoint. The guys also discuss why we probably can’t annualize that growth for the NASDAQ and why they still anticipate seeing some type of recession later this year.

What Do the Money Wise Guys Mean by a Reflex Rally?

While the term “reflex rally” is not widely used, the Money Wise guys use it in the context of the NASDAQ’s Q1 performance in this show. In this case, a reflex rally refers to the NASDAQ’s seeming meteoric rise that may amount to a bounce-back after a period of significant decline – which we saw in 2022. A reflex rally could be due to technical factors, or fundamental ones. Check out the full show for more context on the reflex rally the NASDAQ may be experiencing now.

In the second hour, the Money Wise guys discuss Registered Investment Advisors vs. Brokers. 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.