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AI Monetization and the Barbell Strategy · The SPY Trader

• 0:00
  Hello everyone and welcome to Spy Trader .
• 0:03
  I am your host , Sunny Shores , and I am so glad you could join me for our afternoon update .
• 0:09
  It is 2:30 pm on Tuesday , July 21st , 2026 , here on the Pacific coast , and we have a lot of movement in the markets to discuss .
• 0:19
  We are currently navigating what we call a mature expansion phase in the U.S.
• 0:24
  economy .
• 0:26
  We are right in the thick of the Q2 earnings season , and the big story is the shift from the artificial intelligence hype we saw a couple of years ago to actual AI execution and monetization .
• 0:38
  The SPDR S&P 500 ETF Trust , or SPY , is up about eight point five percent so far this year .
• 0:46
  While growth is steady , we are seeing more volatility .
• 0:51
  The Federal Reserve has kept interest rates at three point five percent , and with inflation stable at two point three percent , we are seeing real yields for the first time in a while .
• 1:02
  This is great news for fixed income instruments like the iShares Core U.S.
• 1:07
  Aggregate Bond ETF , also known as AGG .
• 1:12
  Even though the labor market is holding steady with four point one percent unemployment , wage growth has cooled off , which is actually helping consumer discretionary spending and benefiting broad funds like the Vanguard Total Stock Market ETF .
• 1:27
  Looking at specific sectors , technology continues to lead the way through the Technology Select Sector SPDR Fund , or XLK .
• 1:36
  However , the focus has moved from hardware to software .
• 1:40
  For example , Microsoft and Alphabet just reported earnings that showed a massive twentyfive percent yearoveryear increase in CloudAI revenue .
• 1:49
  Because of this , I recommend maintaining exposure to the Invesco QQQ Trust to capture these AI integrators .
• 1:56
  Healthcare is another big winner right now .
• 1:59
  The Health Care Select Sector SPDR Fund is performing exceptionally well thanks to breakthroughs in weight loss drugs from Eli Lilly and mRNA vaccines from Moderna .
• 2:11
  Real estate is also rebounding .
• 2:13
  As interest rates have plateaued , the Vanguard Real Estate ETF is seeing a resurgence , particularly in data centers that support AI .
• 2:23
  In other news , the recordbreaking July heatwave has pushed energy demand to new heights , and many investors are starting to look at nuclearlinked stocks as a longterm play .
• 2:35
  Also , with a slightly weaker U.S.
• 2:37
  dollar , the Vanguard Total International Stock ETF is looking very attractive for those seeking growth in undervalued European markets .
• 2:46
  For my specific trading recommendations today , I am suggesting a few different paths .
• 2:51
  First , for a balanced core , look at the Vanguard S&P 500 ETF , or VOO .
• 2:58
  It has a lower expense ratio than SPY , making it a great place to put about half of your new capital .
• 3:05
  For those looking for stability , the iShares twentyplus Year Treasury Bond ETF , TLT , is a great hedge because we expect the Fed might cut rates slightly by the end of the year .
• 3:17
  If you want higher growth , consider the Vanguard FTSE Emerging Markets ETF , or VWO , which captures the high GDP growth in places like India .
• 3:29
  Finally , it is wise to hold about five percent in SPDR Gold Shares , or GLD , as portfolio insurance against geopolitical tensions , especially with gold prices sitting above twentyseven hundred dollars an ounce .
• 3:44
  My final advice for this Tuesday afternoon is to use a barbell approach .
• 3:49
  Balance your highgrowth tech like the QQQ with defensive stability in healthcare and bonds .
• 3:56
  Stick to the big names like the Magnificent Seven that are showing real earnings growth in their filings and avoid the speculative penny stocks .
• 4:04
  That is all for this update .
• 4:06
  I am Sunny Shores , and this has been Spy Trader .
• 4:10
  Happy trading !