The AI Halo Effect & Investor FOMO
The Money Wise guys are back with another jam-packed show! They begin with last week’s numbers from Wall Street. The Dow was down 1.0%, the S&P 500 was up 0.3%, and the NASDAQ was up 2.5%. Year-To-Date the Dow is down slightly, while the S&P 500 and the NASDAQ are both up. The guys discuss the big performance difference between the Dow and NASDAQ – a more than 24% difference YTD – which is a reversal from what we saw last year. Of course, AI has been the steam engine for the S&P 500 and the NASDAQ this year, and the Money Wise guys once again discuss that impact, reviewing what we see when we look at the equally weighted index. They discuss the efficiencies AI will create across industries worldwide, whether investors are having FOMO, and how this emerging “AI Halo” compares to the Dot-Com bubble.
Emerging Term to Know: AI Halo
It’s the first show where the Money Wise guys have used the emerging term “AI Halo” so let’s dig into exactly what that means. A Halo Effect describes a scenario where investors show favoritism to stocks that are tied to a specific industry or product. The AI Halo implies that investors are currently favoring buying any company with even a pinky finger in AI. Are you experiencing the AI Halo in your own investment decisions?
In the second hour, the Money Wise guys share the secrets of What Wall Street Won’t Tell You. 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.
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