A Surprise Rate Hike, AI Anxiety, & What Wall Street Won’t Tell You

Jeff Davidson (0:00)

All opinions expressed by Davidson Capital Management on Money Wise are solely theirs and are based upon information they consider reliable and is subject to change without notice. You should be aware of the risk in investing in any security or investment strategy discussed on the show.

Before acting, you should consider whether it is suitable for your particular circumstances and should seek advice from your own financial or investment advisor. Past performance is not indicative of future results.

Kyle Davidson (0:25)

You're listening to Money Wise with Davidson Capital Management. Got your Money Wise guys back inside the Money Wise studio with me for this weekend show. I have my brother, Jeff, Louis May, and I am your host, Kyle Davidson, for the new listeners to the Money Wise program. Davidson Capital Management is a fee-only registered investment advisor. When our 37th year of business and with offices in San Antonio and Corpus Christi, we have your investment management needs covered throughout Central and South Texas. If you'd like to learn more about us, you can go to our website at davidsoncap.com. Or if you'd like to give us a call at our office on Monday to discuss your personal financial situation or take advantage of a portfolio stress test from your Money Wise guys, you can reach us in our San Antonio or Corpus Christi office toll-free at 1-800-275-2162.

If you'd like to send us an email, you can send emails to moneywiseatdavidsoncap.com.

And don't forget, you can subscribe to the Money Wise podcast or Apple podcast or any of your favorite streaming podcast apps. We can leave your comments and don't forget to like the show. As we kick off every weekend's Money Wise program, I turn it over to my brother Jeff to go into the numbers from Wall Street from this past week. So Jeff, take it away.

Jeff Davidson (1:40)

Okay. In the week just past, the Dow Jones Industrial Average was down about 891 points or 1.7 percent. The S&P 500 last week was down about nine and a half points or one-tenth of one percent.

And the Nasdaq last week was up 189.5 points or seven-tenths of one percent.

Now for the year to date, the Dow Jones Industrial Average is up seven and a half percent. The S&P 500 year to date is up 11.8 percent. And the Nasdaq year to date is up 14.1 percent.

Kyle Davidson (2:15)

Thank you, Jeff.

Jeff Davidson (2:16)

You're welcome.

Kyle Davidson (2:17)

So I want to welcome everyone to this weekend's Money Wise program. If you're a new listener, the Money Wise guys have been pulling a curtain back telling the whole truce of Wall Street for more than 20 years here on the Money Wise program.

Also, just a little bit of housekeeping, because this weekend show is a little unique because of the Fighting Texas Aggies pregame. So we actually only have a half hour show. So we only have two segments. So we have a lot of information, especially since we were off on last weekend show due to football pregame. Got a lot of information we've got to get in these two segments. But before we dive into the show, I do want to announce to all of our listeners about the Money Wise program, the launching of the Davidson Capital Management website, our new website, which was launched late Friday afternoon. So definitely check it out. And I want to thank, of course, Jacqueline here in our San Antonio office for her hard work and dedication putting that together. It's absolutely gorgeous, along with our team on the East Coast, Illuminated Advisors to get that launch. So everyone check it out. Definitely has a different look and feel.

So now that we only have two segments to get a lot of information in, do we just go dive in headlong for me to get out my plate of crow with knife and fork and start eating it? Because as I've been saying for, I couldn't tell you how many shows that there is no way the Federal Reserve is going to be raising interest rates. Well, lo and behold, the Federal Reserve this past week raised interest rates a quarter of 1 percent to bring the overnight federal funds rate to 3 and three-quarters percent to 4 percent. I find it so ironic that the pundits and the financial entertainment press and just the market clamoring saying, you've got to show your independence, you've got to show your independence from President Trump, you've got to raise rates. Well, them pushing for them to raise rates to show their independence from Trump, that kind of doesn't make sense to me because then they were pushed and pressured by the market when the data does not support any kind of interest rate increase. And so I just find that ironic.