Money Wise

The 50-Day Test, When Momentum Meets Resistance, & 401(K) Rollovers

After a stretch of record highs, the markets finally caught their breath. This week’s Money Wise explores what happens when momentum meets resistance, from the S\&P 500’s test of its 50-day moving average to the market’s sharp recovery after a late-week rally. The Money Wise guys discuss how short-term volatility often signals strength, not weakness, in a bull market, and why a healthy pause helps prevent the market from overheating. The conversation also turns to investor sentiment, which remains surprisingly negative despite strong year-to-date gains. The team highlights recent data showing all-time-high cash levels in money market funds,  a sign that many investors are still on the sidelines. Meanwhile, the crew explains how these cautious attitudes, paired with robust fundamentals, could lay the groundwork for future gains once confidence catches up to performance. \ THE 50-DAY TEST \ When analysts talk about the 50-day moving average, they’re referring to a technical benchmark that smooths out market fluctuations by averaging closing prices over the past 50 trading days. It often acts as a “line in the sand” between short-term strength and weakness. When an index like the S\&P 500 dips below this level, it can trigger concern that momentum is fading, but holding above it or quickly rebounding, as we’ve seen recently, often signals underlying resilience. For investors, these tests aren’t warnings to panic but reminders to stay focused on long-term strategy rather than short-term noise. In the second hour, the Money Wise guys dive into all things 401(K) Rollovers. You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at davidsoncap.com [http://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.

A Goldilocks Market, Washington Gridlock, & RIA vs. Broker

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 [http://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.

All-Time Highs, a Government Shutdown, & The Best Investment Advice Ever

The Money Wise guys start the show with a rapid-fire market update for the week just passed. The group recap a strong week for Wall Street, with all three major indices closing at record highs despite the ongoing government shutdown. The Dow climbed more than 1,000 points, while the S&P 500 and NASDAQ each gained over 1.5%, proving once again that the market is more interested in fundamentals than political headlines. The guys discuss how the markets shrugged off the lack of economic data releases due to the shutdown, even treating the Consumer Price Index (CPI) report, slightly cooler month over month but 3% year over year, as a “Goldilocks” number. The conversation turns to the Federal Reserve’s long-debated 2% inflation target, questioning whether it’s time to move the goalpost closer to 3%, given historical averages and the structure of the current economy. They also touch on challenges within the housing market, including rising mortgage rates, mismatched buyer and seller dynamics, and growing hesitancy among potential homeowners. Despite negative sentiment and political noise, the market’s resilience and steady climb reflected continued confidence in the broader economic backdrop. A GOVERNMENT SHUTDOWN Despite the ongoing government shutdown, the markets have remained largely unfazed. Historically, short-term shutdowns have had minimal long-term effects on stocks, as investors tend to focus on broader economic fundamentals rather than temporary political disruptions. While a prolonged shutdown could delay key economic data releases, creating uncertainty for policymakers and analysts, it doesn’t directly halt private-sector activity or corporate earnings growth. In fact, markets often view the lack of government data as a pause in potential bad news, allowing momentum to continue. Overall, unless the shutdown begins to meaningfully affect consumer spending or confidence, its impact on the market is expected to be limited. In the second hour, the Money Wise guys share The Best Investment Advice Ever . You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at davidsoncap.com [http://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.

Climbing the Market Mountain, When Negativity Meets a Bull Market & 401(K) Rollovers

This week on Money Wise, the team digs into a strong performance on Wall Street - with the Dow up 1.6%, S&P 500 up 1.7%, and NASDAQ climbing 2.1%, while discussing the market’s ongoing resilience in the face of widespread investor skepticism. Despite impressive year-to-date gains across major indices, investor sentiment remains unusually negative, a disconnect that could actually fuel future growth once optimism catches up. Kyle uses his “Mount Everest” analogy to remind listeners that bull markets need pauses to stay healthy, emphasizing that pullbacks are normal and even necessary for long-term momentum. Jeff and Joe weigh in on volatility and investor behavior, noting that market corrections in the 7–12% range are part of any sustainable rally. Louie references recent Fundstrat research showing it’s rare to see such strong market returns alongside negative sentiment, a setup that historically precedes continued gains. The team also highlights a staggering $7.6 trillion sitting in money market funds, suggesting there’s still plenty of cash waiting to reenter the market. Between skeptical investors and cautious fund managers, this “dry powder” could become a powerful force for further upside once confidence returns. WHEN NEGATIVITY MEETS A BULL MARKET While sharp price swings can feel uncomfortable, volatility is a sign of a functioning, responsive market. It reflects investor reactions to new data, earnings results, policy shifts, or economic reports, and helps prices find their true value over time. Without these fluctuations, markets risk becoming complacent or inflated, setting the stage for more severe corrections later. Volatility also serves a purpose in maintaining long-term market health. It encourages investors to reassess positions, reprice risk, and avoid herd mentality. When markets pull back, they often flush out speculative excess and create new entry points for disciplined, long-term investors. In this way, volatility acts as a “pressure valve,” releasing tension before it builds into instability. In the second hour, the Money Wise guys dive into all things 401(K) Rollovers. You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at davidsoncap.com [http://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.

Politics Heat Up, Markets Stay Cool, & Equity Index Annuities

This week, the Money Wise team tackles a headline-dominated week that centered on Washington’s government shutdown, and the market’s complete lack of reaction to it. Despite the political drama, the Dow rose 511 points (+1.1%), the S&P 500 climbed 72 points (+1.1%), and the NASDAQ gained 296 points (+1.3%). Year-to-date, all three major indexes continue their steady climb, with the NASDAQ leading at +18%. The guys note that even with economic data releases halted, trading volume stayed strong, with the S&P 500 showing buy-side activity above its daily average all week. They emphasize that this marks the 11th government shutdown since 1980, and history shows markets rarely care. In fact, investors seem to view the lack of news as a relief, “no news is good news.” The conversation turns political as the crew discusses how the administration’s stance on spending and immigration has shaped the fiscal standoff. Yet, from an investment perspective, they stress that markets continue to take it in stride, ignoring media-driven panic. With the S&P 500 just shy of record highs and up 12% since November 2024, the hosts push back on the “bubble talk” dominating financial media, reminding listeners that the economy remains strong, backed by 3.8% GDP growth and consistent investor optimism. MARKETS STAY COOL  Even with political gridlock dominating the headlines, markets stayed cool, showing once again that investors tend to look past short-term noise. The guys point out that history has consistently shown resilience during government shutdowns, budget battles, and other moments of uncertainty. In fact, reviewing past performance reminds us that markets often continue their long-term upward trend despite temporary volatility. Understanding this history helps investors maintain perspective, avoid reactionary decisions, and stay focused on the fundamentals driving growth rather than fleeting headlines. In the second hour, the Money Wise guys discuss Equity Index Annuities. You don’t want to miss the details! Tune in for the full discussion on your favorite podcast provider or at davidsoncap.com [http://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.