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Navigating the Goldilocks Economy: AI Shifts and Market Strategy · The SPY Trader

• 0:00
  Hello everyone and welcome to Spy Trader .
• 0:03
  I am your host , Penny Profitt .
• 0:05
  It is 2:30 pm on Monday , September 7th , 2026 , Pacific time .
• 0:11
  While the NYSE and Nasdaq are closed for Labor Day today , we are taking this pause to look at the big picture for your portfolio .
• 0:18
  So far in 2026 , the S&P 500 , or SPY , has delivered a solid 11.4 percent yeartodate return .
• 0:27
  We are seeing a healthy widening of the market .
• 0:30
  While the techheavy Invesco QQQ Trust led the way previously , investors are now demanding more than just AI hype .
• 0:38
  This has allowed the Vanguard Total Stock Market ETF , or VTI , to actually outperform tech indices recently , showing that the average American company is finally catching a break .
• 0:51
  Looking at the macro picture , we have officially entered the Maintenance Era .
• 0:57
  The Federal Reserve has lowered rates to a neutral range of 3.5 to 3.75 percent , and last Friday’s jobs report showed a stable 4.1 percent unemployment rate .
• 1:08
  This Goldilocks scenario means we likely avoided a recession .
• 1:12
  In sector news , the AI trade is shifting from chips to power and software .
• 1:18
  While NVIDIA is still the king of hardware , companies like Microsoft and Salesforce are now proving they can turn AI into real software profit .
• 1:28
  We are also keeping a very close eye on the Apple event tomorrow , September 8th , where the iPhone 18 is expected to debut with major localized AI features .
• 1:38
  Interestingly , the Utilities Select Sector SPDR Fund , known as XLU , has become a growth play because data centers need so much electricity .
• 1:48
  Companies like NextEra Energy are benefiting massively from this .
• 1:53
  For my trading recommendations , I suggest a Barbell Core Strategy .
• 1:58
  Split your main holdings between the Vanguard S&P 500 ETF , VOO , and the total market index VTI .
• 2:07
  This gives you stability while capturing smaller companies that thrive when interest rates fall .
• 2:13
  Second , look at the infrastructure behind AI rather than just the processors .
• 2:18
  I like the Technology Select Sector SPDR Fund , XLK , or NextEra Energy for its role in powering the grid .
• 2:27
  If you are looking for income or protection against the upcoming midterm election uncertainty , the iShares 20 plus Year Treasury Bond ETF , TLT , is a great choice as rates continue their slow descent .
• 2:41
  Finally , consider geographic diversification .
• 2:44
  With a softening US dollar , the Vanguard FTSE Emerging Markets ETF , VWO , offers growth in regions like India and Southeast Asia at a lower price point than expensive US stocks .
• 2:58
  As we prepare for the market open tomorrow , watch Apple closely .
• 3:02
  If the iPhone 18 wows the crowd , it will lift the QQQ and XLK .
• 3:08
  Also , keep an eye on the 10year yield ; if it stays below 4 percent , real estate plays like the Vanguard Real Estate ETF , VNQ , are a buy .
• 3:19
  Consider a small position in SPDR Gold Shares , GLD , as a hedge against political volatility later this year .
• 3:27
  The market is healthy but pricey , so focus on real earnings and enjoy the rest of your Labor Day holiday .
• 3:34
  Day holiday !