Markets Rebound, Emotional Investing, & The Best Investment Advice Ever

As always, the Money Wise guys kick off this week with a look into the numbers from Wall Street. Thankfully, the markets delivered a dramatic turnaround, with the Dow up 1,898 points (5%), the S&P 500 gaining 289 points (5.7%), and the NASDAQ soaring 1,137 points (7.3%). While year-to-date numbers remain negative—Dow down 5.5%, S&P 500 down 8.8%, and NASDAQ down 13.4%—the guys unpack what they call one of the wildest weeks in market history, particularly Wednesday’s rally, which ranked among the top 10 point gains for the Dow. The Money Wise guys compare the volatility to COVID-era swings but emphasize that this time, the chaos is largely self-inflicted—driven by headlines, tweets, and the ongoing uncertainty surrounding Trump’s tariff plans.

Much of the conversation focuses on how investor emotions—from despair to euphoria—can wreak havoc in volatile environments like this. The team stress the importance of staying invested and not letting fear drive decisions, citing that missing just a few of the market’s biggest up days can drastically cut long-term returns. They also discuss Trump’s strategic pivot on tariffs, which may lead to long-term benefits—including potential revenue generation to extend tax cuts. With policy uncertainty still hanging over the markets, they want to remind listeners that disciplined, balanced investing is more important than ever—especially when a single tweet can send stocks soaring or crashing.

Emotional Investing

This week, the Money Wise team emphasizes that emotional investing is one of the most damaging habits an investor can fall into—especially during volatile periods like this. Making decisions based on fear, panic, or even excitement can lead to costly mistakes, such as pulling out of the market right before a major rebound. They point out that missing just a handful of the market’s biggest up days—like this week’s historic rally—can drastically reduce long-term returns. In environments driven by headlines and political uncertainty, keeping emotions in check and staying committed to a long-term strategy is key to avoiding self-inflicted financial setbacks.

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.