The stock market got ‘jiggy’ on Tuesday with the S&P 500 down about 2% (give or take)1 But, by this morning (Friday), it again started showing resilience, with major indices experiencing modest pullbacks amid earnings season.
From Monday’s open to Friday at 11 a.m. ET, the S&P 500 declined 0.4% to close near 6,940, the Dow Jones Industrial Average fell 0.3% to 49,359, and the Nasdaq Composite dropped 0.7% to 23,515. Small-cap stocks provided a bright spot, with the Russell 2000 rising over 2%, reflecting a healthy rotation toward undervalued segments and building on year-to-date gains of nearly 8%. Overall, the market remains supported by steady economic signals.
Of interest, many that I spoke to assumed that the market tanked on Tuesday because the mainstream media reported that the US was going to ‘invade’ Greenland (laughable IMHO). In actuality, it was caused by issues with the Japanese bond market auction not going favorably.
So much for assuming the markets care about non-financial things.
Trending Topics This Week
One prominent discussion in financial news and on some of the socials revolves around the role of artificial intelligence in portfolio construction. Advisors are increasingly exploring AI tools to analyze data and recommend personalized asset allocations, potentially enhancing efficiency for retirees managing risk and income needs.
This trend highlights how technology could streamline planning without replacing human oversight.
This Week’s Ideas
- Consider a Qualified Longevity Annuity Contract (QLAC) within your IRA or 401(k), allowing up to 25% of assets (or $200,000) to be deferred from RMDs until age 85, providing guaranteed income later in life while reducing current tax obligations.
- Explore series I savings bonds for inflation-protected growth; with current rates offering a fixed component plus inflation adjustment, they serve as a low-risk hedge for retirement portfolios, especially for those nearing or in retirement seeking principal preservation.
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The information on our website and this blog is for information purposes only. It is believed to be reliable, but JR Snell Capital Management does not warrant its completeness or accuracy. The information on our website and in this newsletter or blog is not intended as an offer or solicitation for the purchase of stock or any financial instrument.
- According to TradingView, my trading platform. ↩︎