Latest / The SPY Trader / The Great Rotation: Gold’s Surge and the Shift to Real Assets

Transcript

The Great Rotation: Gold’s Surge and the Shift to Real Assets · The SPY Trader

• 0:00
  Good morning , traders !
• 0:02
  I am your host , Penny The Profit Pincher , and you are listening to Spy Trader .
• 0:06
  It is 5 am on Tuesday , January 27th , 2026 , here on the Pacific coast .
• 0:13
  Whether you are just waking up or finishing a night shift , I am glad you are here as we navigate this wild market together .
• 0:20
  We have a lot to cover today , as 2026 is already proving to be a year of big shifts and even bigger headlines .
• 0:28
  Let’s dive into what is moving the needle .
• 0:31
  The S&P 500 , which we follow through the SPY and VOO ETFs , is currently hovering around the 6,940 level .
• 0:40
  After a fantastic 2025 where the market was up nearly 18 percent , we are hitting a bit of a pushpull phase .
• 0:48
  The Nasdaq100 , or the QQQ , is feeling a little sluggish as the massive excitement over AI starts to demand real proof of profit .
• 0:58
  Interestingly , the real action is happening abroad .
• 1:01
  International funds like VXUS and VEA are actually outperforming the US market so far this year , up about 4 to 5 percent while the S&P 500 is sitting on a thin halfpercent gain .
• 1:16
  We are witnessing what many are calling the Great Rotation .
• 1:19
  Investors are moving away from highgrowth tech and into what we call real assets and defensive sectors .
• 1:26
  The big winner right now is Basic Materials , tracked by the XLB ETF , which is up over 9 percent this year .
• 1:34
  This is being driven by a massive rally in precious metals , with gold hitting alltime highs above 5,000 dollars an ounce .
• 1:42
  Energy is also strong , with ExxonMobil and Chevron benefiting from geopolitical jitters .
• 1:48
  On the flip side , technology is under pressure .
• 1:51
  Intel recently saw its stock plunge 17 percent after some disappointing news about AI chip demand .
• 1:59
  Meanwhile , the financial sector is a bit of a mixed bag ; Goldman Sachs is doing well on investment fees , but everyone is a bit nervous about a proposed 10 percent cap on credit card interest rates .
• 2:12
  In the macro world , the Federal Reserve has our attention .
• 2:16
  Rates are currently between 3.5 and 3.75 percent , and we expect them to hold steady this week .
• 2:24
  There is also a bit of a wildcard in the news : tensions over a proposal for the US to acquire Greenland have sparked fears of a trade war with Europe , which is exactly why we are seeing people run toward gold as a safe haven .
• 2:38
  Looking at individual companies , Tesla jumped 4 percent after Elon Musk announced full selfdriving approval for Europe and China .
• 2:46
  Johnson and Johnson also reported strong sales growth , giving a nice boost to the Healthcare sector , or XLV .
• 2:54
  All eyes are now on the Magnificent Seven earnings coming later this week .
• 2:59
  So , what should you do with your portfolio ?
• 3:02
  Based on the data , here are a few ideas .
• 3:04
  First , consider some defensive growth with the Consumer Staples ETF , ticker XLP .
• 3:11
  It has jumped 7.5 percent recently as people look for safety .
• 3:15
  Second , if you are worried about inflation or global tension , gold through the GLD ETF is acting as essential insurance right now .
• 3:25
  For those looking for value , the iShares Russell 2000 , ticker IWM , is finally outperforming the big guys thanks to recent tax cuts and lower rates .
• 3:35
  Finally , if you want some income , take a look at the Vanguard Real Estate ETF , ticker VNQ .
• 3:42
  With a yield of nearly 4 percent , companies like Prologis could really benefit as the Fed continues to ease up on rates .
• 3:50
  The big takeaway today is that the era of tech dominance is hitting a bit of a hurdle .
• 3:56
  It might be time to reduce some of those heavy tech positions in the XLK and look toward commodities and international value .
• 4:04
  That is all for this morning's update on Spy Trader .
• 4:07
  I am Penny The Profit Pincher , reminding you to stay diversified and stay cool .
• 4:13
  I will see you in a few hours with more updates !