December 14, 2025 • 15 mins
In this clip from Market Mondays, hosts Rashad Bilal and Troy Millings sit down with financial analyst Caleb Silver to break down the current economic landscape and what lies ahead for 2026. The conversation starts with a historic event—the cancellation of the American jobs report—and what it signals for business journalists, policymakers, and everyday investors. Caleb Silver explains why, despite the anxiety over inflation and consumer confidence being at lows reminiscent of the Great Financial Crisis, the U.S. economy is in better shape than most people feel. The clip dives into key data points like updated unemployment rates, wage growth, and the impact of underreported layoffs and AI-driven changes in the job market. The discussion pivots to stock market trends, especially the dominance of the "Mag 7" mega-cap tech stocks. Troy Millings asks the crucial question: If the Mag 7’s run slows, can the rest of the S&P 500 pick up the slack? Caleb Silver provides deep insights into what breadth in the market really looks like, highlighting why recent rallies in healthcare, financials, and commodities matter for investors seeking diversification. Walmart’s shift to the Nasdaq and its surprising outperformance versus other tech giants is put under the spotlight. Caleb Silver explains why Walmart's move is strategic, aiming for a spot among elite growth stocks and inclusion in popular indices. Looking ahead, the clip identifies where opportunities may exist for investors going into 2026, including sector rotation, the resurgence of healthcare and biotech, and the importance of looking at undervalued mid- and small-cap stocks. Caleb Silver explains the difference between small, mid, large, and mega-cap companies, and how those categories affect investment strategies in a world dominated by trillion-dollar giants. If you want to understand where the U.S. market, consumer sentiment, and investor behavior are heading, this clip is packed with actionable analysis. Plus, get a behind-the-scenes glimpse of what investors and financial researchers are really looking up as we close out the year. *Hashtags:* #MarketMondays #CalebSilver #EconomicOutlook #2026Forecast #StockMarket #Investing #Walmart #Mag7 #MidCapStocks #SmallCapStocks #FinancialAnalysis #ConsumerConfidence #Inflation #JobMarket #SectorRotation #WallStreet #Nasdaq #S&P500 #BullMarket #Investopedia
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
This episode is brought to you by P and C Bank.
A lot of people think podcasts about work are boring,
and sure they definitely can be, but understanding of professionals
routine shows us how they achieve their success little by little,
day after day. It's like banking with P and C Bank.
It might seem boring to save, plan and make calculated
(00:21):
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what helps you live or more happily fulfilled life. P
and C Bank Brilliantly Boring since eighteen sixty five. Brilliantly
Boring since eighteen sixty five is a service mark of
the PNC Financial Service Group, Inc. P and C Bank
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Speaker 2 (00:43):
So let's talk about some other economic factors. The jobs
report was canceled for the first time in our instruy.
So what does this say that amongst other things, but
what does it say about the state of the economy
and what's your thoughts on where we're headed into twenty six?
Speaker 3 (01:01):
Yeah, the fact that we haven't gotten the government jobs data,
that is troubling for you know, business journalists like me
on the one hand, but we're getting so much data anyway.
We get great stuff from ADP every month on the
private payrolls. I think that tells you a lot more
than the BLS survey of households and businesses, when they
literally calling tens of thousands of them on the phone
(01:21):
and emailing and saying are you hiring? How many people
are you hiring? Are you planning to hire in the
next three months. They do it in the first two
weeks of every single month, so by the time you
get it anyway, it's already three weeks late, and it's
based on a certain extrapolation.
Speaker 4 (01:33):
Of all those phone calls and emails.
Speaker 3 (01:35):
So I never thought it was that exact, and it
was getting muddier by the second getting everything that was
going on in the labor.
Speaker 4 (01:40):
Department with the Trump administration.
Speaker 3 (01:42):
So the economy, I think, is in better shape than
people think, and certainly than the way people feel. People
feel terrible about the economy right now. Consumer confidence, guys,
as you know, is almost as low as it was
during the Great Financial Crisis, and we're in much better
shape than we were back then. Just people feel terrible
because inflation, they feel it's coming even going to come
even more in twenty twenty six, especially in the form
(02:04):
of higher healthcare payments and healthcare premiums. They feel like
prices have gotten out of control, that nobody can control it,
so they blame the government and they blame corporations for that.
But in reality, if the unemployment rate really is somewhere
between four point four and five percent, that's still relatively
low right now. Wages has been increasing like three and
a half to four percent, that's decent. We are hearing
(02:26):
about growing, drumming about more layoffs and you know the
AI fears about it taking people's jobs. Those are significant
and just that psychology can weigh in on people. But
we continue to spend because that's what we're really good at,
is consumers. And as long as we're doing that, and
you have all these you know, multi trillion dollar companies
pledging to spend tens hundreds of billions of dollars with
each other, that's driving the other part of the economy.
Speaker 4 (02:47):
Economic growth is going to be there.
Speaker 3 (02:49):
Economic growth is going to be there with lower interest
rates next year, and we're going to hear that on
Wednesday when the Fed comes out with its decision, which
will probably lower rates by a quarter point, but it'll
signal through the dot plot it's you know, it's sort
of summary of where FED governors think interest rate should
be a year from now, that they're going to be
probably a full percentage point lower one year from now.
So this combination of lower interest rates in the economy
(03:10):
not falling off a cliff, and tariffs being more smoke
than fire really at this point in time, and corporate
profits are growing. All these things signal the fact that
the economy is probably going to grow and might be
actually okay, although people on the low end of things
are not going to feel it, and they never do.
They're just going to feel worse as the investing class
does even better.
Speaker 5 (03:30):
I saw you on your skateboard today talking about the
Fed dut plot. I appreciate that that content. So there
was a report today all over the weekend when they
were talking about the Max seven and how it's had
this amazing run and at some point the reality check
is going to happen, and some analysts are saying it
will happen in twenty twenty six. The same analyst was
saying that the S and P is going to have
(03:50):
a great year next year. I find it kind of
hard to figure out how the two things are going
to work, right, if the max seven you're talking about
some of the biggest companies, these big hyperscales the MAX
I think they make up thirty five to thirty six
percent of the SMB. So if those don't do well,
how do we see the rest of the S and
P picking up that lift and saying, all right, we'll
(04:11):
carry the market from here.
Speaker 4 (04:12):
What are your thoughts on this? Yeah, great question, And
you guys know this well.
Speaker 3 (04:16):
If you look at the S and P five hundred
versus the equal weight S and P five hundred, Remember
the S and P.
Speaker 4 (04:21):
Five hundred is market weighted.
Speaker 3 (04:22):
The biggest stocks weigh the most and account for the
biggest part of the index like in video, Microsoft, Meta, Amazon, Apple,
you name it. But if you just take an equal weight,
it is underperforming the SMP five hundred by a fair amount,
by about ten percent this year. But what we've seen lately, guys,
which is I find very interesting. After that five percent
pull back a few weeks ago, which seems like forever ago, now,
(04:43):
the market rebounded almost almost to where it was. We're
about one percent away from all time highs. And in
that rebound, we saw with the technical analysis like to
call breath thrust sounds like a fencing term, but what
it really is is a majority of stocks rallying at
the same time, right, And that's what you want to
see in a healthy bull market. You want to see
(05:03):
a lot of stocks rallying, not just ten stocks, twenty
stocks rallying into to make the market make new heis,
And that's really what it was with all these big
megacap tech socks and AI socks. Now you're seeing better breath,
and you're seeing better breath in sectors that actually matter.
You're starting to see a little bit in commodities because
interest rates are cooling out a little bit on the
(05:24):
short term. You're starting to see it in healthcare, which
we haven't seen in a long time. You're starting to
see it in financials because lower rates are coming. That's
going to be good for them in terms of their
net interest margins. So you're seeing broader participation in the market,
and that's a healthy sign of a bull market in
its fourth year. And this bull is getting a little
bit tired. That said all, we're going into a midterm
(05:44):
election year. Those are always a little volatile, but the
trend is up until the right, especially with lower interest
rates on the horizon that power small to mid cap
stocks and sectors outside of megacap tech. That's actually good
news for momentum. I'm not saying we're going to get
another eighteen nineteen percent year. Probably will get annoy normal
a year unless something terrible happens.
Speaker 6 (06:02):
Do you to follow up in Short's question, do you
think we have a reformulation of the MAX seven Well,
do you think it'll be a consolidation into five or
do you think they'll keep the MAX seven and just
change the waiting in the structure of it.
Speaker 3 (06:16):
I think just by the nature of investor preference, it'll change.
As you know, you've seen investors, especially big investors like
Berkshire Hathaway another stocks like Apple, But the leadership is
still the leadership and the biggest stocks in the index
right now.
Speaker 4 (06:32):
So you know MAX seven.
Speaker 3 (06:33):
I think that was Kramer who came up with that term,
along with Fang to come up with a name for that.
It's really ben as you guys know, more like you
know a dozen stocks and you named a few that
were a real part of the rally or the oracles
of the world, the sales forces of the world. They
were a big part of that rally as well. Anybody
that was tied to the AI build out and has
a big market cap was useful and helpful in bringing
(06:55):
the market to record highs eighteen times already so far
this year. But you'll get a broadening out of participation
and you're seeing stocks making record highs. You know, you're
seeing the banks start to roll back and the record highs,
the JP Morgans and Goldman's, those were dancing our record
high So when you see financials doing well and you
see starts to see other sectors rallying along with it
outside of tech, that's a good sign. So I you know,
(07:16):
you'll you'll always have leadership. But well, we'll come up
with a new name in the next year or two
whatever next group of stocks outperforms the rest of them.
Speaker 5 (07:24):
Yeah, we got to figure out how to get broad
Common to your seven side there.
Speaker 4 (07:27):
Yeah, Broadcom has been an outstanding stock. Yeah, also Walmart too.
Speaker 6 (07:33):
Can I do a follow up? Real quicker shot? The
stock is valued of what forty times earnings? They think
the stock is up twenty five percent this year? Why
do you think Walmart doesn't get the same respect in
Amazon may receive even though if you look going back
to twenty eighteen, less parts at twenty cents currently a
one thirteen fifty six. Despite classification of where they landed,
(07:57):
why do you think that they aren't put in that
Mad seven or Elite eight type of range.
Speaker 4 (08:02):
Well, did you notice what just happened in the last
couple of weeks? Where did that? What happened with Walmart?
What exchange did it move to?
Speaker 3 (08:09):
It moved to the Nasdaq, great point, right, It's been
on the nearest stock exchange forever, right, and it decided
that it needed to be listed on a different exchange,
the NASDAK. Now why the Nasdaq, Right, that's where the
fastest growth stocks in the world live. That's where growth stocks,
that's it, that's where you list. And so it wanted
to be included in those conversations. So you're not the
(08:29):
only one that noticed it. And they noticed it themselves.
They are much more than the biggest retailer in the world,
and they are that, but they are a logistics company, right,
They're a data company, right, that is what they're into
these days. And I was just out in Bettonville for
the first time. If you guys haven't been out there.
First of all, we should go out there and do
a market Monday's out there. There's nothing it is outstanding
that it blew my mind being in that town and
(08:52):
you see the history of Walmart, which is really the
history of America, and just just all over the place,
in the infrastructure that's around the Walmart trooper centers there,
it's phenomenal.
Speaker 4 (09:04):
So it wants to be a tech company.
Speaker 3 (09:05):
It wants to be thought of as a growth company,
and so it changed where it was listed and maybe
able to get that respect because now you've got to
include it in the qqqs of the world, right, you
got to include it.
Speaker 4 (09:15):
With growth stocks.
Speaker 3 (09:15):
Indexes and portfolio managers that own those sectors are going
to have to buy it if they.
Speaker 4 (09:20):
Don't own it already.
Speaker 3 (09:21):
And it's actually outperformed I was checking this out. It's
outperformed the NASAC over the past five years. So it
definitely belongs in that exchange and maybe it'll get the
respect that it deserves.
Speaker 2 (09:32):
What opportunities do you see in twenty twenty six.
Speaker 3 (09:36):
Well, I think this sector rotation is helpful and good.
We have all been piled into the same group of
stocks forever and it's been great. It's been very rewarding
for shareholders. Right, if you picked the five to ten
fastest growing stocks in the market, especially in tech, especially
in Internet and communications and AI, you have had an
incredible run as a shareholder. And no surprise that we
(09:58):
have more four to one k millionaires than any time
in history. We've all been piled into the same socks.
But when everyone's piled into that side of the boat,
you can see what happens.
Speaker 4 (10:05):
We saw, you know, the.
Speaker 3 (10:06):
NVIDIAs of the world, the Oracles of the world, of Microsoft,
the Matters, these were down beyond correction territory. They're almost
down in baar market territory. So you've had a healthy
valuation resizing there, which is good. But in a lot
of ways they've become value stocks or safety stocks.
Speaker 4 (10:23):
Right.
Speaker 3 (10:23):
It's either gold or that, right, and it all depends
on the equity risk premium for investors right now. So
I think you're going to see a rotation into a
little bit more defensive, but also a little bit more
broadening into the healthcare sector. As I mentioned earlier, biotech
finally caught a bid and then smaller down the market
value chain as you get into the midcaps and the
(10:44):
small caps that are going to benefit from lower interest rates.
Speaker 4 (10:46):
There's a lot of.
Speaker 3 (10:47):
Good companies there that are doing business in a way
that's not necessarily tearff sensitive, that are operating great businesses.
So I watch midcaps. You can buy the MidCap ETFs
if you want, or you can buy the small caps.
You have to get some exposure to.
Speaker 2 (11:02):
Explain because some people might not be familiar from your website.
Can you explain the difference when you say mid caps
small cap?
Speaker 4 (11:08):
Oh? Sure, large cap? Yeah, small cap stocks.
Speaker 3 (11:11):
We're talking like five billion to ten to fifteen twenty
billion in marketcap, right, and market cap means the stock
price time, the amount of shares outstanding. The more shares outstanding,
the bigger your stock price, the higher your market cap.
And videov obviously the biggest of the mar of the
companies in the world in terms of market caap. Mid
caps are more in that twenty five I would say,
(11:32):
two hundred billion dollars market cap range. And these are
manufacturing companies, these are financial services companies. Some of these
are even tech companies or working on the fringes of
AI or on the fringes of semiconductors, and they have
fabulous businesses that are super profitable, and right now, you
want to have very strong profit margins. If you are
(11:53):
a publicly traded company, this matters more than anything revenue
per employee, how much productivity are you squeezing out of
your labor force, how are you using a AI to
do that, and how is that powering your profit margins
and your profits Because at the end of the day,
as investors, that's what we're paying for. Grow your profits
because it's going to be reflected in your share price
and in the dividends you pay back to investors. So
(12:14):
in that mid cap range, they're going to benefit from
lower interest rates because these companies borrow a lot of
money and as rates go down and they refinance their debt,
that eases the stress on their balance sheets and they're
more profitable and that's usually a benefit to shareholders. So
I would look down down the chain a little bit
as well.
Speaker 2 (12:30):
And then large cap did you talk about large gap?
Speaker 3 (12:32):
Yeah, large cap are the biggest companies in the world.
The two hundred billion to now five trillion megacap, Oh mega,
those are megacaps. Those are the one trillion to five trillion.
Large cap would be the two hundred billion to one
trillion dollars in market CAAP now, but that you know,
those ranges have expanded over time because we live in
the land of the giants.
Speaker 5 (12:51):
You had to update Invesclopedia because we didn't have a
trillion dollar company until like recently. You're right, I gotta
all get right now that I want it because you
sit in a unique seat and we're trending towards the
end of the year. I wonder from a retail investors side,
what are you seeing in people searching?
Speaker 3 (13:11):
Like?
Speaker 1 (13:11):
What are the things that people are looking into? I
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retail investors or any investor really is looking forward to.
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back end so you can keep pushing your vision forward
This episode is brought to you by P and C Bank.
A lot of people think podcasts about work are boring,
and sure they definitely can be, but understanding of professionals
routine shows us how they achieve their success little by little,
day after day. It's like banking with P and C Bank.
It might seem boring to save, plan and make calculated
(00:21):
decisions with your bank, but keeping your money boring is
what helps you live or more happily fulfilled life. P
and C Bank Brilliantly Boring since eighteen sixty five. Brilliantly
Boring since eighteen sixty five is a service mark of
the PNC Financial Service Group, Inc. P and C Bank
National Association Member FDIC.
Speaker 2 (00:43):
So let's talk about some other economic factors. The jobs
report was canceled for the first time in our instruy.
So what does this say that amongst other things, but
what does it say about the state of the economy
and what's your thoughts on where we're headed into twenty six?
Speaker 3 (01:01):
Yeah, the fact that we haven't gotten the government jobs data,
that is troubling for you know, business journalists like me
on the one hand, but we're getting so much data anyway.
We get great stuff from ADP every month on the
private payrolls. I think that tells you a lot more
than the BLS survey of households and businesses, when they
literally calling tens of thousands of them on the phone
(01:21):
and emailing and saying are you hiring? How many people
are you hiring? Are you planning to hire in the
next three months. They do it in the first two
weeks of every single month, so by the time you
get it anyway, it's already three weeks late, and it's
based on a certain extrapolation.
Speaker 4 (01:33):
Of all those phone calls and emails.
Speaker 3 (01:35):
So I never thought it was that exact, and it
was getting muddier by the second getting everything that was
going on in the labor.
Speaker 4 (01:40):
Department with the Trump administration.
Speaker 3 (01:42):
So the economy, I think, is in better shape than
people think, and certainly than the way people feel. People
feel terrible about the economy right now. Consumer confidence, guys,
as you know, is almost as low as it was
during the Great Financial Crisis, and we're in much better
shape than we were back then. Just people feel terrible
because inflation, they feel it's coming even going to come
even more in twenty twenty six, especially in the form
(02:04):
of higher healthcare payments and healthcare premiums. They feel like
prices have gotten out of control, that nobody can control it,
so they blame the government and they blame corporations for that.
But in reality, if the unemployment rate really is somewhere
between four point four and five percent, that's still relatively
low right now. Wages has been increasing like three and
a half to four percent, that's decent. We are hearing
(02:26):
about growing, drumming about more layoffs and you know the
AI fears about it taking people's jobs. Those are significant
and just that psychology can weigh in on people. But
we continue to spend because that's what we're really good at,
is consumers. And as long as we're doing that, and
you have all these you know, multi trillion dollar companies
pledging to spend tens hundreds of billions of dollars with
each other, that's driving the other part of the economy.
Speaker 4 (02:47):
Economic growth is going to be there.
Speaker 3 (02:49):
Economic growth is going to be there with lower interest
rates next year, and we're going to hear that on
Wednesday when the Fed comes out with its decision, which
will probably lower rates by a quarter point, but it'll
signal through the dot plot it's you know, it's sort
of summary of where FED governors think interest rate should
be a year from now, that they're going to be
probably a full percentage point lower one year from now.
So this combination of lower interest rates in the economy
(03:10):
not falling off a cliff, and tariffs being more smoke
than fire really at this point in time, and corporate
profits are growing. All these things signal the fact that
the economy is probably going to grow and might be
actually okay, although people on the low end of things
are not going to feel it, and they never do.
They're just going to feel worse as the investing class
does even better.
Speaker 5 (03:30):
I saw you on your skateboard today talking about the
Fed dut plot. I appreciate that that content. So there
was a report today all over the weekend when they
were talking about the Max seven and how it's had
this amazing run and at some point the reality check
is going to happen, and some analysts are saying it
will happen in twenty twenty six. The same analyst was
saying that the S and P is going to have
(03:50):
a great year next year. I find it kind of
hard to figure out how the two things are going
to work, right, if the max seven you're talking about
some of the biggest companies, these big hyperscales the MAX
I think they make up thirty five to thirty six
percent of the SMB. So if those don't do well,
how do we see the rest of the S and
P picking up that lift and saying, all right, we'll
(04:11):
carry the market from here.
Speaker 4 (04:12):
What are your thoughts on this? Yeah, great question, And
you guys know this well.
Speaker 3 (04:16):
If you look at the S and P five hundred
versus the equal weight S and P five hundred, Remember
the S and P.
Speaker 4 (04:21):
Five hundred is market weighted.
Speaker 3 (04:22):
The biggest stocks weigh the most and account for the
biggest part of the index like in video, Microsoft, Meta, Amazon, Apple,
you name it. But if you just take an equal weight,
it is underperforming the SMP five hundred by a fair amount,
by about ten percent this year. But what we've seen lately, guys,
which is I find very interesting. After that five percent
pull back a few weeks ago, which seems like forever ago, now,
(04:43):
the market rebounded almost almost to where it was. We're
about one percent away from all time highs. And in
that rebound, we saw with the technical analysis like to
call breath thrust sounds like a fencing term, but what
it really is is a majority of stocks rallying at
the same time, right, And that's what you want to
see in a healthy bull market. You want to see
(05:03):
a lot of stocks rallying, not just ten stocks, twenty
stocks rallying into to make the market make new heis,
And that's really what it was with all these big
megacap tech socks and AI socks. Now you're seeing better breath,
and you're seeing better breath in sectors that actually matter.
You're starting to see a little bit in commodities because
interest rates are cooling out a little bit on the
(05:24):
short term. You're starting to see it in healthcare, which
we haven't seen in a long time. You're starting to
see it in financials because lower rates are coming. That's
going to be good for them in terms of their
net interest margins. So you're seeing broader participation in the market,
and that's a healthy sign of a bull market in
its fourth year. And this bull is getting a little
bit tired. That said all, we're going into a midterm
(05:44):
election year. Those are always a little volatile, but the
trend is up until the right, especially with lower interest
rates on the horizon that power small to mid cap
stocks and sectors outside of megacap tech. That's actually good
news for momentum. I'm not saying we're going to get
another eighteen nineteen percent year. Probably will get annoy normal
a year unless something terrible happens.
Speaker 6 (06:02):
Do you to follow up in Short's question, do you
think we have a reformulation of the MAX seven Well,
do you think it'll be a consolidation into five or
do you think they'll keep the MAX seven and just
change the waiting in the structure of it.
Speaker 3 (06:16):
I think just by the nature of investor preference, it'll change.
As you know, you've seen investors, especially big investors like
Berkshire Hathaway another stocks like Apple, But the leadership is
still the leadership and the biggest stocks in the index
right now.
Speaker 4 (06:32):
So you know MAX seven.
Speaker 3 (06:33):
I think that was Kramer who came up with that term,
along with Fang to come up with a name for that.
It's really ben as you guys know, more like you
know a dozen stocks and you named a few that
were a real part of the rally or the oracles
of the world, the sales forces of the world. They
were a big part of that rally as well. Anybody
that was tied to the AI build out and has
a big market cap was useful and helpful in bringing
(06:55):
the market to record highs eighteen times already so far
this year. But you'll get a broadening out of participation
and you're seeing stocks making record highs. You know, you're
seeing the banks start to roll back and the record highs,
the JP Morgans and Goldman's, those were dancing our record
high So when you see financials doing well and you
see starts to see other sectors rallying along with it
outside of tech, that's a good sign. So I you know,
(07:16):
you'll you'll always have leadership. But well, we'll come up
with a new name in the next year or two
whatever next group of stocks outperforms the rest of them.
Speaker 5 (07:24):
Yeah, we got to figure out how to get broad
Common to your seven side there.
Speaker 4 (07:27):
Yeah, Broadcom has been an outstanding stock. Yeah, also Walmart too.
Speaker 6 (07:33):
Can I do a follow up? Real quicker shot? The
stock is valued of what forty times earnings? They think
the stock is up twenty five percent this year? Why
do you think Walmart doesn't get the same respect in
Amazon may receive even though if you look going back
to twenty eighteen, less parts at twenty cents currently a
one thirteen fifty six. Despite classification of where they landed,
(07:57):
why do you think that they aren't put in that
Mad seven or Elite eight type of range.
Speaker 4 (08:02):
Well, did you notice what just happened in the last
couple of weeks? Where did that? What happened with Walmart?
What exchange did it move to?
Speaker 3 (08:09):
It moved to the Nasdaq, great point, right, It's been
on the nearest stock exchange forever, right, and it decided
that it needed to be listed on a different exchange,
the NASDAK. Now why the Nasdaq, Right, that's where the
fastest growth stocks in the world live. That's where growth stocks,
that's it, that's where you list. And so it wanted
to be included in those conversations. So you're not the
(08:29):
only one that noticed it. And they noticed it themselves.
They are much more than the biggest retailer in the world,
and they are that, but they are a logistics company, right,
They're a data company, right, that is what they're into
these days. And I was just out in Bettonville for
the first time. If you guys haven't been out there.
First of all, we should go out there and do
a market Monday's out there. There's nothing it is outstanding
that it blew my mind being in that town and
(08:52):
you see the history of Walmart, which is really the
history of America, and just just all over the place,
in the infrastructure that's around the Walmart trooper centers there,
it's phenomenal.
Speaker 4 (09:04):
So it wants to be a tech company.
Speaker 3 (09:05):
It wants to be thought of as a growth company,
and so it changed where it was listed and maybe
able to get that respect because now you've got to
include it in the qqqs of the world, right, you
got to include it.
Speaker 4 (09:15):
With growth stocks.
Speaker 3 (09:15):
Indexes and portfolio managers that own those sectors are going
to have to buy it if they.
Speaker 4 (09:20):
Don't own it already.
Speaker 3 (09:21):
And it's actually outperformed I was checking this out. It's
outperformed the NASAC over the past five years. So it
definitely belongs in that exchange and maybe it'll get the
respect that it deserves.
Speaker 2 (09:32):
What opportunities do you see in twenty twenty six.
Speaker 3 (09:36):
Well, I think this sector rotation is helpful and good.
We have all been piled into the same group of
stocks forever and it's been great. It's been very rewarding
for shareholders. Right, if you picked the five to ten
fastest growing stocks in the market, especially in tech, especially
in Internet and communications and AI, you have had an
incredible run as a shareholder. And no surprise that we
(09:58):
have more four to one k millionaires than any time
in history. We've all been piled into the same socks.
But when everyone's piled into that side of the boat,
you can see what happens.
Speaker 4 (10:05):
We saw, you know, the.
Speaker 3 (10:06):
NVIDIAs of the world, the Oracles of the world, of Microsoft,
the Matters, these were down beyond correction territory. They're almost
down in baar market territory. So you've had a healthy
valuation resizing there, which is good. But in a lot
of ways they've become value stocks or safety stocks.
Speaker 4 (10:23):
Right.
Speaker 3 (10:23):
It's either gold or that, right, and it all depends
on the equity risk premium for investors right now. So
I think you're going to see a rotation into a
little bit more defensive, but also a little bit more
broadening into the healthcare sector. As I mentioned earlier, biotech
finally caught a bid and then smaller down the market
value chain as you get into the midcaps and the
(10:44):
small caps that are going to benefit from lower interest rates.
Speaker 4 (10:46):
There's a lot of.
Speaker 3 (10:47):
Good companies there that are doing business in a way
that's not necessarily tearff sensitive, that are operating great businesses.
So I watch midcaps. You can buy the MidCap ETFs
if you want, or you can buy the small caps.
You have to get some exposure to.
Speaker 2 (11:02):
Explain because some people might not be familiar from your website.
Can you explain the difference when you say mid caps
small cap?
Speaker 4 (11:08):
Oh? Sure, large cap? Yeah, small cap stocks.
Speaker 3 (11:11):
We're talking like five billion to ten to fifteen twenty
billion in marketcap, right, and market cap means the stock
price time, the amount of shares outstanding. The more shares outstanding,
the bigger your stock price, the higher your market cap.
And videov obviously the biggest of the mar of the
companies in the world in terms of market caap. Mid
caps are more in that twenty five I would say,
(11:32):
two hundred billion dollars market cap range. And these are
manufacturing companies, these are financial services companies. Some of these
are even tech companies or working on the fringes of
AI or on the fringes of semiconductors, and they have
fabulous businesses that are super profitable, and right now, you
want to have very strong profit margins. If you are
(11:53):
a publicly traded company, this matters more than anything revenue
per employee, how much productivity are you squeezing out of
your labor force, how are you using a AI to
do that, and how is that powering your profit margins
and your profits Because at the end of the day,
as investors, that's what we're paying for. Grow your profits
because it's going to be reflected in your share price
and in the dividends you pay back to investors. So
(12:14):
in that mid cap range, they're going to benefit from
lower interest rates because these companies borrow a lot of
money and as rates go down and they refinance their debt,
that eases the stress on their balance sheets and they're
more profitable and that's usually a benefit to shareholders. So
I would look down down the chain a little bit
as well.
Speaker 2 (12:30):
And then large cap did you talk about large gap?
Speaker 3 (12:32):
Yeah, large cap are the biggest companies in the world.
The two hundred billion to now five trillion megacap, Oh mega,
those are megacaps. Those are the one trillion to five trillion.
Large cap would be the two hundred billion to one
trillion dollars in market CAAP now, but that you know,
those ranges have expanded over time because we live in
the land of the giants.
Speaker 5 (12:51):
You had to update Invesclopedia because we didn't have a
trillion dollar company until like recently. You're right, I gotta
all get right now that I want it because you
sit in a unique seat and we're trending towards the
end of the year. I wonder from a retail investors side,
what are you seeing in people searching?
Speaker 3 (13:11):
Like?
Speaker 1 (13:11):
What are the things that people are looking into? I
know there's a lot of talk of recession and what
the future is going to look like? Becker, what are
those trends that you're seeing from the investorpedia side that
retail investors or any investor really is looking forward to.
On your site, Earners, what's up? You ever walk into
a small business and everything just works, like the checkout
is fast, or seats are digital, tipping is a breeze,
(13:33):
and you're out the door before the line even builds.
Odds are they're using Square? We love supporting businesses that
run on Square because it just feels seamless, whether it's
a local coffee shop, a vendor at a pop up market,
or even one of our merch partners. Square makes it
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their business with confidence, all from one simple system. One
(13:56):
of the things we love most is seeing neighborhood businesses
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started with a small takeout counter. Now with Square they've
been able to expand into a full sit down restaurant
and even started catering events across the city. That's the
kind of growth that inspires us, and it's powered by Square.
(14:17):
Square is built for all types of businesses, from the
corner bagel shop that turned into a local chain, to
the specialty market with thousands of unique items, to the
stylist who's been holding you down for years. If you're
a business owner or even just thinking about launching something soon,
Square is hands down one of the best tools out
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(14:39):
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(14:59):
back end so you can keep pushing your vision forward
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