Bodner: Expect "Choppy" September, NVDA Set Stage for End of 2026 Rally

**SPEAKER_1** (0:00)
Good morning, and welcome back to Opening Bell. I hope you're having a wonderful Monday. We'll get you ready for the trading day. Jason Bodner, co-founder of Money Flows, is with me right now, and we look at the stock performance at the end of August, and we see the S&P up 3%, the NASDAQ up over 4%, oils down 1%, while gold gained 10%. I know you're gonna be talking about gold a bit.
Some of your thoughts here on now what? You know, we had a pretty great August, which sometimes it's light or quiet. Your thoughts?

**Jason Bodner** (0:30)
Yeah, well, we love to look at data, money flows, and thanks for having me on, by the way.
August is historically a weaker month of the year, so we got a little surprise there. September, however, historically the weakest month of the year, going back to our data since 1990, and obviously we have a bunch on deck. We have PCI, we have jobs, we have the finale with the Fed. So I would expect September to be a choppy month for stocks and today's type of action to sort of continue.

**SPEAKER_1** (1:03)
Did you think that the fund flows, which you wrote a lot about where the fund flows, where the interest was going into gold, told you a story?

**Jason Bodner** (1:13)
Yeah, it actually told part of this story. It was a little bit of a surprise to see fund flows moving into gold, and we look at that through various ETFs and their flows, and we look at unusual institutional volume moving into funds. That told us, yes, it was moving into gold, which historically risk-adverse, they're seeking safety. But at the same time, we saw fund flows moving into cryptocurrencies, moving into global equities, moving into US equities.
There's a mixed message there, and the mixed message really is, it's not a risk-off, it's market rotation and funds just leaving one side of the market moving into the other.

**SPEAKER_1** (1:56)
Yeah, I just actually checked on Bitcoin. I was looking at Bitcoin and Ethereum, and for the month of August, Bitcoin was up 24 percent, Ethereum up over 30 percent. So it was an incredible run, no doubt.
The market rotation, we certainly saw tech doing very well. The Mag 7, for example, the Mag ZTF was up more than 4.5 percent for this month. Do you expect tech to continue to be a leader between now and the end of the year?

**Jason Bodner** (2:21)
Absolutely. You know, if they take a pause in September and October for historic midterm election jitters, I would understand that. But the underlying numbers for tech are just astonishing, semiconductors, 135 percent earnings growth. And then you have obviously the pièce de résistance last week, Nvidia's blowout numbers guiding double the revenue that analysts expected, 70 percent revenue growth and just off the charts sales and earnings growth. And he's talking a 20 year pipeline. The AI trade is alive and well, and tech companies are really poised to be beneficiary, especially the smaller pick and ax place. So what we see setting up is in a midterm election year, while September, October is historically the weakest months of those years in a presidential cycle, November and December are off the charts, historically speaking. So if we get that type of rally with the election out of the way and fears out of the way, I would expect tech to really do phenomenally well in the back quarter of the year.

**SPEAKER_1** (3:29)
So I know you're not a stock picker, per se, but you just talked about Nvidia and the blowout numbers that they had and doubling revenue growth and the look ahead for a 20-year pipeline. And we think about the Mag-7.
Do you think that group is a good group or Nvidia in particular? Feel free to share. I mean, for investors, they want to know, should they get in that group?

**Jason Bodner** (3:50)
Sure. Well, I think obviously Nvidia is the leader of AI. Unquestionably, you know, the news stories are circulating around Elon Musk and OpenAI and obviously essential companies. But the company that continues to execute is obviously Nvidia. I personally have held it for a long time. I don't plan on selling it anytime soon. And to your point, we are actually stock pickers at Money Flows. So while I love the Mag-7, there are other stocks I really like, such as Arista Networks. They are sort of the networking central nervous system of AI explosive sales and earnings growth. They just reported quarter to revenue of 3.04 billion. That was up 37.7%.
And as networking needs more and more demand with AI, needing faster and faster communication, Anet's right at the center of it.