Latest / The SPY Trader / Thriving in the Neutral Era

Transcript

Thriving in the Neutral Era · The SPY Trader

• 0:00
  Hello there , market friends !
• 0:02
  You are listening to Spy Trader .
• 0:04
  I am your host , Barnaby Bull , and it is a lovely Friday , May 15th , 2026 .
• 0:10
  Right now , it is 2:30 pm here on the Pacific coast , and we are wrapping up another busy week in the markets .
• 0:18
  We have officially entered what I like to call the Neutral Era .
• 0:22
  The Federal Reserve has been keeping interest rates steady at three point two five to three point five percent for a while now , and the market is finally breathing a sigh of relief .
• 0:33
  Inflation has calmed down to two point one percent , and the first quarter showed a growth rate of two point eight percent .
• 0:40
  Most of that growth is coming from Applied AI , where companies in manufacturing and logistics are finally seeing realworld gains from all those tech investments .
• 0:51
  Looking at the sectors , Technology is moving from hype to results .
• 0:55
  Microsoft just shared that their Copilot tools helped boost enterprise margins by fifteen percent .
• 1:01
  The Invesco QQQ Trust is still the leader here , though some investors are looking at midcap stocks now that the Magnificent Seven are getting a bit pricey .
• 1:11
  Healthcare is also having a massive year , acting as the top performer of 2026 .
• 1:18
  Eli Lilly and Novo Nordisk released data on new , cheaper tripleagonist pills , which pushed the Health Care Select Sector SPDR Fund to alltime highs .
• 1:28
  Even Real Estate and Financials are bouncing back .
• 1:31
  The Vanguard Real Estate ETF is up twelve percent this year , and big banks like JPMorgan Chase are seeing more merger and acquisition deals happening again .
• 1:42
  For your portfolio , I am recommending a Barbell Strategy .
• 1:47
  For growth , keep a core position in the Invesco QQQ Trust or Nvidia .
• 1:52
  We want companies like Microsoft and Alphabet that are turning AI into subscription revenue .
• 1:58
  On the defensive side , consider the Vanguard FTSE Developed Markets ETF , or VEA .
• 2:05
  Since the US dollar has weakened , European luxury and industrial stocks are trading at a huge discount compared to US tech .
• 2:14
  I also like the Vanguard Real Estate ETF for income , especially holdings like Prologis , which runs those hightech automated warehouses .
• 2:23
  Lastly , for some stability , look at the iShares twenty plus year Treasury Bond ETF , known as TLT .
• 2:31
  It is a great hedge if we see more volatility later this year .
• 2:35
  To wrap things up , take a look at your allocations .
• 2:39
  If your SPY or VOO holdings have grown too large , consider rebalancing into international options like VXUS or bonds like BND .
• 2:49
  Use the Vanguard Total Stock Market ETF , VTI , as your anchor to stay diversified .
• 2:55
  Watch the upcoming earnings for Salesforce and Adobe to see if they can prove their AI value .
• 3:01
  That is it for today .
• 3:03
  Have a wonderful weekend , stay smart with your trades , and I will talk to you next time !