The Money Wise Guys kick off this week’s podcast with a market recap, highlighting a strong performance across major indexes. The Dow rose 243 points (0.5%), the S&P 500 gained 89 points (1.5%), and the NASDAQ jumped 503 points (2.6%), with all three maintaining solid year-to-date gains. The discussion touches on technicals, noting that the S&P 500 has been stuck in a sideways trading range since late January. Key market drivers remain interest rate expectations and ongoing tariff negotiations. While initial tariff announcements caused sharp reactions, market sensitivity has eased as investors adjust to the administration’s strategy of using tariffs as leverage in trade deals. Meanwhile, the Federal Reserve reiterated its data-driven approach to monetary policy, though speculation continues about whether persistent inflation could slow down expected rate cuts.

Beyond market movements, the guys focus on tariffs and their broader economic impact. The administration’s latest round of reciprocal tariffs, particularly on the Eurozone and India, reignited debates about their inflationary effects. While some argue tariffs drive up prices, the guys pointed out that competition and supply chain adjustments help mitigate long-term inflation risks. With the administration pushing aggressive policy changes in its first 100 days, heightened volatility is expected throughout 2025. The key takeaway? Investors should stay informed, remain flexible, and prepare for continued market fluctuations as new economic policies take shape.

Tariff tantrums—sharp market reactions to new trade policies—have become a recurring theme, though their impact appears to be fading. Initially, every new tariff announcement triggered volatility, but investors seem to be adjusting to the administration’s aggressive trade stance. While tariffs can raise costs on imported goods and contribute to inflation, the market is learning to anticipate these moves rather than panic. The back-and-forth nature of tariff negotiations, where policies are announced, adjusted, or delayed, has created uncertainty, but also opportunities for traders who navigate the swings. As businesses adapt supply chains and the administration continues its tit-for-tat approach, the market’s sensitivity to tariff news may keep diminishing—unless a major escalation reignites the tantrums.

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, 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 Money Wise guys are back at it again, and this past week showed a mixed market, with the Dow slipping 241 points (-0.5%), the S&P 500 declining 14.5 points (-0.2%), and the NASDAQ dropping 104 points (-0.5%). Despite the losses, year-to-date gains remain solid, with the Dow up 4.1%, the S&P 500 up 2.5%, and the NASDAQ up 1.1%. The discussion highlights continued market volatility, particularly Friday’s selloff following a stronger-than-expected average hourly earnings report, which reignited concerns over inflation. While the unemployment rate ticked down to 4%, and job growth was slightly below expectations, the markets reacted negatively, underscoring the ongoing “perversion” where good economic news can trigger selling pressure due to fears of Federal Reserve policy adjustments.

The guys also welcomed new associate advisor Louie to the show, discussing his background and fresh perspective as part of the next generation of investment management. Shifting focus back to market narratives, they emphasize the impact of media-driven sentiment, particularly the attention given to inflation concerns and commodity prices, like the rising cost of eggs and brisket. The guys also reiterate expectations for heightened market volatility in 2025 and go into a discussion on the broader economic impact of tariffs and government policies. Tune in to hear more about the week’s market moves, inflation’s influence on trading behavior, and how investors can navigate the uncertainty ahead.

Tariffs, when used strategically, can be a powerful tool to protect domestic industries, encourage American manufacturing, and even generate government revenue. By making imported goods more expensive, they level the playing field for U.S. businesses, incentivizing consumers to buy American-made products and keeping jobs at home. Plus, in a global economy where other countries play by their own rules, tariffs can be a way to push back against unfair trade practices. However, it's essential to recognize that excessive or poorly targeted tariffs can lead to unintended consequences. For instance, they can increase costs for consumers and businesses that rely on imported materials, potentially leading to higher prices and reduced economic growth. Therefore, while tariffs can be beneficial in certain contexts, they must be implemented with caution to avoid escalating trade tensions and harming the very economy they aim to protect.

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, 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 Money Wise guys are back in the studio and as always, the team kicks off this week’s episode by breaking down a volatile market week, with the Dow gaining 120 points (+0.3%) while the S&P 500 fell 61 points (-1%) and the NASDAQ dropped 327 points (-1.6%). Despite the week’s losses, all three indices remain positive year-to-date, with the Dow up 4.7%, the S&P 500 up 2.7%, and the NASDAQ up 1.6%. The guys discuss the increased volatility of 2025, which they expect to be higher than in 2024, and the impact of algorithm-driven trading on market swings. Monday’s sharp selloff in tech stocks was fueled by an unverified report from DeepSeek, a Chinese AI research lab, claiming that an open AI model could be built for just $6 million. This triggered a major downturn in the NASDAQ, as markets reacted to fears of AI advancements disrupting big tech profitability. However, further analysis revealed the report to be misleading, leading to a recovery the next day.

The conversation highlights the importance of active management in navigating knee-jerk market reactions, as well as the team’s strategic decision to reduce exposure to mega-cap tech stocks at the start of the year. While not anticipating a specific event like this, the guys recognize the risks of overconcentration in a few dominant names and positioned their portfolios accordingly. They also touch on Microsoft’s discovery of stolen AI data from China, raising further concerns about AI security and market manipulation. They emphasize the need for investors to stay disciplined, avoid emotional reactions, and focus on long-term strategies in a market increasingly influenced by algorithmic trading and unvetted news.

Algorithmic trading, also known as algo trading, refers to the use of computer programs and complex mathematical models to execute trades at high speeds based on predefined criteria. These algorithms analyze vast amounts of market data, news feeds, and technical indicators to make split-second decisions, often executing trades in fractions of a second. While algorithmic trading increases market efficiency and liquidity, it can also amplify volatility, as seen in cases where automated systems react to unverified news or sudden price movements. This can lead to exaggerated selloffs or rallies, as algorithms trigger a chain reaction of trades based on momentum rather than fundamental analysis. For investors, understanding the impact of algo trading is crucial, as it underscores the importance of active management, diversification, and maintaining a disciplined approach during rapid market fluctuations.

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, where you can also learn more about the Money Wise guys or take advantage of a portfolio review and analysis with Davidson Capital Management.