Money Wise

Volatility in AI Stocks, Thoughtful Portfolio Construction, & The Best Investment Advice Ever

This week’s Money Wise episode takes listeners through a choppy but telling stretch in the markets, underscoring why perspective matters, especially in a bull market. The week delivered mixed results across the major indexes, with the Dow Jones Industrial Average down roughly 0.7%, the S\&P 500 essentially flat, and the NASDAQ managing a modest gain of about 0.5%. Despite the uneven week, the bigger picture remains constructive, with year-to-date performance still firmly positive across all three indexes. The episode also dives into the importance of thoughtful portfolio construction. While AI-related companies have been strong performers, the discussion highlights why disciplined profit-taking and diversification across sectors can help manage volatility and create more balanced portfolios. Rather than chasing headlines or hot sectors, the message is clear: bull markets climb walls of worry, and investors who stay patient, diversified, and grounded in fundamentals are often better positioned over time. \ VOLATILITY IN AI STOCKS\ A major focus of the conversation centers on renewed volatility in AI-related stocks and the growing “wall of worry” surrounding the AI infrastructure buildout. The Money Wise guys push back on constant comparisons to the dot-com era, emphasizing that large-scale technological transformations take years, not months, to fully develop. AI, they argue, remains in the early-to-middle innings, and periodic pullbacks, headlines, and rotations are a normal part of long-term growth themes. 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.

AI Panic, Predictive Markets, & Equity Index Annuities

We’re back after a two-week break, and there was a lot to catch up on. This week’s Money Wise episode opens with a mixed market recap: the Dow pushed higher, while the S\&P 500 and NASDAQ slipped, reflecting a week dominated by volatility and a sharp “attack of the Friday” sell-off. For the week, the Dow Jones Industrial Average gained roughly 503 points, or 1%, while the S\&P 500 fell about 43 points, down 0.6%, and the NASDAQ dropped approximately 383 points, or 1.6%. Despite the pullback, the bigger picture remains constructive, with year-to-date gains sitting at roughly 13.9% for the Dow, 16.1% for the S\&P 500, and 20.1% for the NASDAQ. Kyle breaks down how a single negative AI-related news story spiraled into a broad tech slide, while Jeff and Joe highlight the deeper issue: a market hypersensitive to headlines and eager to overreact to anything tied to AI. The Money Wise guys also dig into the growing influence of predictive markets, the dangers of casino-style trading attracting inexperienced investors, and why Wall Street will always find a way to package products people are willing to buy, even if it isn’t what they should be buying. They close by emphasizing the importance of broader diversification, resisting media-driven panic, and understanding that bull markets often climb a long wall of worry, exactly what we're seeing today. \ PREDICTIVE MARKETS\ The rise of predictive markets is creating a new layer of casino-style behavior among younger investors who are treating Wall Street like a betting app rather than a place to build long-term wealth. Platforms that allow users to “wager” on market outcomes or economic events blur the line between investing and gambling, and they’re gaining traction with Gen Z and inexperienced traders who are drawn to the instant-gratification model of prediction markets. The Money Wise guys warn that Wall Street will always supply whatever products people are willing to buy,  even if those products encourage speculation instead of strategy. When investors start chasing coin-flip outcomes rather than fundamental research, volatility escalates, emotions take over, and portfolios become dangerously exposed to short-term swings. It’s a trend worth watching, and one that makes disciplined, diversified investing even more important. 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.**

The AI Bubble Myth, Dangers of Media Hype, & What Wall Street Won’t Tell You

We’re back after a two-week break, and there’s plenty to catch up on in this week’s episode. The Money Wise guys dive straight into the recent market pullback, examining the roughly 2% drop across major indexes and what’s driving the latest wave of investor anxiety. From fears of an “AI bubble” to the media’s constant comparisons to the dot-com era, the hosts discuss why the recent downturn looks more like a technical correction than a fundamental shift. They also break down the factors behind this pullback, including stretched valuations, short-term speculation in areas like cryptocurrency, and limited new economic data due to the ongoing government shutdown. Despite the noise, they argue that the core market fundamentals, strong earnings, steady GDP growth, and historical patterns, point to a healthy, ongoing bull market. The conversation also touches on the role of media sentiment in shaping investor behavior and how the rhetoric surrounding tech and AI may be fueling unnecessary volatility. \ THE AI BUBBLE MYTH \ The “AI bubble” narrative has become a favorite talking point in the financial media, but treating every tech-led rally as the next dot-com repeat can mislead investors. Calling it a bubble implies that valuations are detached from reality, when in fact today’s AI growth is being driven by real spending, real adoption, and real earnings from some of the strongest companies in the world. The danger of the AI Bubble Myth is that it fuels unnecessary fear, pushes investors to the sidelines, and encourages emotional decision-making right when long-term discipline matters most. When headlines shout “bubble,” investors risk reacting to noise rather than fundamentals. In the second hour, the Money Wise guys give listenters a peek into 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 [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.

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.