In this week’s episode, the Money Wise guys reflect on Wall Street’s recent performance, highlighting the Dow’s 0.6% drop last week, alongside gains of 1% in the S&P 500 and 3.3% in the NASDAQ. Year-to-date, the Dow is up 18.4%, the S&P 500 is up 27.7%, and the NASDAQ has climbed 32.3%. They discuss November's strong numbers, with the Dow rising 7.5%, the S&P gaining nearly 5.75%, and the NASDAQ up over 6%, driven by what they call the “Trump bump.” As they analyze the ongoing bull market that began in October 2022, the discussion shifts to expectations for a potential "Santa Claus rally" to close the year. The conversation also explores market reactions to Trump’s policies, including tariffs and economic strategies, alongside the bond market's response to shifts in interest rates. The team debates the implications of Trump’s negotiating tactics, which they believe are driving geopolitical and economic adjustments before his inauguration.

The "Trump bump" refers to the stock market rally often attributed to the economic optimism and pro-business policies associated with Donald Trump, particularly during and after his election victories. This phenomenon is driven by expectations of corporate tax cuts, deregulation, and infrastructure spending, which investors believe will boost earnings and economic growth. The term captures the market's initial surge following Trump's election in 2016 and, more recently, renewed gains linked to his anticipated policy actions in a second term. It reflects market sentiment responding to his influence on fiscal and trade policies, often seen as favorable to business and investment.

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.