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Beyond the Magnificent Seven: A New Market Playbook · The SPY Trader

• 0:00
  Good morning , market movers and early risers !
• 0:03
  Welcome to another episode of Spy Trader .
• 0:06
  I am your host , Barnaby Bullseye , coming to you live at 6 am on Friday , March 13th , 2026 , here on the Pacific coast .
• 0:16
  It is a beautiful morning to talk money , and we have a lot to unpack as we navigate this mature phase of the AI expansion that we have been riding since 2023 .
• 0:25
  Let us start with the big picture .
• 0:28
  We are seeing what I like to call a Kshaped recovery this quarter .
• 0:32
  The S&P 500 , which you can track through the SPY or VOO , is hovering right near alltime highs because diversified growth is picking up the slack as the Magnificent Seven momentum cools down a bit .
• 0:46
  Over on the techheavy Nasdaq100 , represented by the QQQ , we are seeing a slight dip of 0.4 percent today .
• 0:56
  This is mostly because investors are rotating out of those highvaluation semiconductor stocks .
• 1:01
  Meanwhile , the little guys are having a great day .
• 1:04
  The smallcap component of the Vanguard Total Stock Market ETF , or VTI , is outperforming with a 1.2 percent jump .
• 1:13
  Why ?
• 1:13
  Because the Federal Reserve is keeping things stable .
• 1:17
  They held interest rates steady at 3.75 percent last week , shifting their focus from fighting inflation to sticking that soft landing .
• 1:26
  Speaking of inflation , yesterday’s CPI report was music to the ears , coming in at 2.2 percent .
• 1:33
  That is right near the target , making the market feel a lot more comfortable .
• 1:38
  In the bond world , the iShares Core U.S.
• 1:40
  Aggregate Bond ETF , or AGG , is seeing steady inflows , while the 10year Treasury yield is sitting at 3.9 percent , keeping the longterm bond ETF , TLT , relatively flat .
• 1:53
  Now , let us dive into the sectors .
• 1:56
  In technology , we are moving from the era of AI potential to AI revenue .
• 2:02
  Microsoft recently announced they are fully integrating Copilot 3.0 across Windows , which is a huge deal for software monetization .
• 2:10
  On the flip side , NVIDIA is down 3 percent this week .
• 2:14
  It turns out AWS and Google are using more of their own inhouse chips to reduce their reliance on NVIDIA’s Blackwell2 architecture .
• 2:22
  Over in healthcare , the XLV fund is a top performer .
• 2:27
  Eli Lilly and Novo Nordisk are hitting new highs thanks to a Lancet study showing longterm benefits for their weightloss pills .
• 2:35
  Also , keep an eye on real estate and financials .
• 2:38
  Large regional banks are reporting betterthanexpected margins , which is boosting the XLF , and the Vanguard Real Estate ETF , VNQ , is finally gaining traction as property values bottom out .
• 2:51
  So , what should you be doing with your portfolio ?
• 2:54
  First , look for quality growth .
• 2:57
  Stick with the cash flow kings like Alphabet , which is trading at a lower valuation than its peers .
• 3:04
  I recommend a core position in the Vanguard S&P 500 ETF , or VOO , to navigate this interest rate environment .
• 3:12
  Second , play a little defense .
• 3:14
  I suggest allocating about 15 percent to the Health Care Select Sector SPDR Fund , XLV , and maybe 5 percent to SPDR Gold Shares , or GLD , as a hedge against global tensions .
• 3:28
  Third , do not forget to look abroad .
• 3:31
  The US market is getting a bit pricey , so consider the Vanguard FTSE Developed Markets ETF , known as VEA .
• 3:38
  It gives you exposure to undervalued European gems like LVMH or Siemens .
• 3:43
  To wrap it up , for broad exposure , stick with VTI .
• 3:47
  If you want growth , look at the QQQ for that software revolution .
• 3:51
  For income , the Vanguard Total Bond ETF , BND , is offering secure 4 percent yields .
• 3:59
  We are cautiously bullish right now , focusing on earnings quality .
• 4:03
  Keep your eyes peeled for the Michigan Consumer Sentiment Index tomorrow to see how everyone is feeling .
• 4:09
  That is it for this morning's Spy Trader .
• 4:12
  Stay smart , stay relatable , and I will see you at the next opening bell !