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Transcript

The 2.2% Pivot: Riding the Next Wave of Growth · The SPY Trader

• 0:00
  Good morning and happy Saturday !
• 0:02
  It is 6 am on June 27th , 2026 , here on the West Coast .
• 0:07
  I am your host , Penny Profit , and you are listening to Spy Trader , your quick guide to making sense of the markets while you enjoy your first cup of coffee .
• 0:16
  We have had a fantastic week of trading to wrap up this final full week of June .
• 0:20
  The market was feeling very cheerful , with the SPDR S&P 500 ETF Trust , or SPY , gaining 1.8 percent .
• 0:30
  Even better , the techfocused QQQ climbed a solid 2.6 percent .
• 0:35
  The big reason for all this sunshine was the latest inflation report .
• 0:39
  The Personal Consumption Expenditures index showed inflation cooling down to 2.2 percent .
• 0:46
  That is the lowest we have seen since early 2021 !
• 0:50
  This news has everyone betting that the Federal Reserve will finally start cutting interest rates this coming September .
• 0:58
  In our big news items , the technology sector is absolutely leading the charge .
• 1:03
  We are now in the era of AI actually making companies money , not just being a buzzword .
• 1:08
  Nvidia , or NVDA , saw its stock jump 4 percent this week because they are ahead of schedule on their new Rubin architecture .
• 1:17
  Meanwhile , Microsoft is seeing record margins thanks to their Copilot 3.0 enterprise software .
• 1:23
  It is not just tech , though .
• 1:26
  Eli Lilly , ticker LLY , hit new alltime highs after getting the thumbs up for a new oral version of their metabolic health drug .
• 1:34
  And for those looking at the neighborhood , the Vanguard Real Estate ETF , VNQ , rose over 2 percent as interest rates started to slip .
• 1:44
  Even Tesla gave investors a reason to smile , jumping 5 percent after expanding their Robotaxi network into three more European cities .
• 1:54
  Looking at our analysis , it feels like we are in a Goldilocks zone where growth is steady but inflation is behaving .
• 2:01
  However , it was not a perfect week for everyone .
• 2:05
  The banking sector , represented by XLF , lagged a bit because the current yield curve makes it hard for big banks like JPMorgan Chase to make a high profit on loans .
• 2:15
  We also saw some trade tensions affect emerging markets like the VWO ETF midweek , though it did bounce back .
• 2:24
  Now , let us talk about what you might want to do with your portfolio based on these facts .
• 2:28
  First , I am recommending an overweight position in the Vanguard Total Stock Market ETF , or VTI .
• 2:35
  While tech is the star , the whole market is starting to join the party .
• 2:39
  VTI lets you catch those midsized and smaller companies that are going to love lower borrowing costs .
• 2:46
  Second , if you see a small dip in the Invesco QQQ Trust , it looks like a great buying opportunity .
• 2:54
  The earnings growth from companies like Nvidia and Microsoft is very real .
• 2:58
  Also , keep an eye on Apple for any AI hardware news .
• 3:02
  For those of you looking for a bit more stability and income , take a look at the iShares 20 plus Year Treasury Bond ETF , also known as TLT .
• 3:12
  With inflation at 2.2 percent , these bonds are looking very attractive as a safety net .
• 3:18
  Finally , I suggest accumulating the Vanguard Real Estate ETF , VNQ .
• 3:24
  Real estate has been a bit of a wallflower lately , but with rate cuts on the horizon , its 4 percent dividend and potential for growth make it a great value play .
• 3:34
  Just a friendly reminder to keep a close eye on the employment data coming out in July .
• 3:38
  If unemployment spikes , we might have to pivot our strategy toward safer bond funds like AGG .
• 3:44
  But for now , enjoy the weekend and the green in your portfolio .
• 3:49
  I am Penny Profit , and this has been Spy Trader .
• 3:52
  See you next time !