Transcript:
Tom Vaughan:
Hello, everybody, welcome to Monday, the S&P 500 was up 1.9%. Today, this is a second green shirt day in a row. And that’s what makes this really important. I mean, we had the NASDAQ up 3.4%. Today, the Russell 2000 index, the small caps up 3%. Today, very similar to what we saw on Friday. So for me, when I’m looking at the market, one of my rules of thumb is to great up days in a row can reverse the trend doesn’t work every time work back in March of 2020, for example. And so this is what we’re seeing today is the second day, which I think is a very important follow through day there. And it’s very powerful both days, I mean, incredible as far as that goes. Last week, we had Apple, Microsoft kind of turned the market around with their earnings reports. Luckily, we own those in our portfolio. And they did really, really well, as far as that goes. And then this week, we have the semiconductors are starting to report Applied Materials. For example, sorry, AMD, Advanced Micro Devices were reporting this week, the semiconductor index that we have in our portfolio, so x x was actually at 5.4%. Today, it’s been lagging a bit. But again, a lot of these companies that are kind of the exciting companies have reported yet. And as they report, it seems that they’ve been beating expectations. And this is exactly what I was talking about before.
If we looked at the last quarter, the market came down prior to earnings, especially from these big companies, because there’s nothing but bad news to focus on Federal Reserve and the inflation and those types of things. And then the earnings come out and people realize, wow, there’s still a lot of money being made even in this environment, and the market starts to recover. And you end up with this scenario where everybody was thinking the market was going down has has basically gotten out, and the only people left are these people that are coming back the other direction. And pretty soon all those other people will be jumping on boards also, hopefully, and we’ll continue to recover. You know, again, I mentioned before in the video last week that there’s been 84 of these five to 10% downturns on the S&P 500 Since the end of World War Two, so more than once a year. And the average recovery time is one month. So you know, who knows, we’ll see what happens here on this one as far as that goes. So I look forward to being able to see what’s going to happen tomorrow. I do think tomorrow, you know, it’d be a little surprised to see it be really strong. Oftentimes you see it take a little bit of a rest after these big type of days, but look forward to seeing what’s going to happen. Talk to you then. Thank you