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AI Fatigue and the Real Economy Rotation · The SPY Trader

• 0:00
  Good morning , everyone !
• 0:02
  Welcome to Spy Trader , the show where we break down the markets so you can start your day with a clear head and a smile .
• 0:08
  I am your host , Barnaby Bulls , and it is exactly 5 am on Friday , February 27th , 2026 , here on the Pacific Coast .
• 0:18
  If you are just waking up , grab your favorite mug , settle in , and let's see what the financial world has in store for us today .
• 0:25
  It has been a bit of a wild ride lately .
• 0:28
  We are seeing a classic shift where investors are moving their money out of highflying tech stocks and into the ' real economy' sectors like banks and energy .
• 0:37
  Yesterday , the S&P 500 , which we follow through the SPY ETF , ended the session down about half a percent to close at 6,908.86 .
• 0:48
  The techheavy Nasdaq100 took a harder hit , falling 1.2 percent , while the Dow Jones stayed essentially flat , actually gaining a tiny bit .
• 0:59
  The big story is what people are calling AI fatigue .
• 1:02
  Even though Nvidia reported a massive sixtyeight point one billion dollars in revenue , the stock actually fell 5.5 percent .
• 1:11
  It seems investors are worried that the growth might not stay this fast forever .
• 1:15
  On the flip side , Accenture surged over 8 percent thanks to a new AI partnership , and Netflix climbed 11 percent after deciding not to get into a bidding war for Warner Bros.
• 1:27
  Discovery .
• 1:28
  Over in the housing world , Rocket Companies is making moves with a new AI alliance just as mortgage rates finally dipped below 6 percent .
• 1:37
  Economically , we are steady as she goes .
• 1:40
  Inflation is cooling down to 2.4 percent , and while the government shutdown slowed things down , private consumption is still looking strong .
• 1:49
  Now , let’s talk about what this means for your portfolio .
• 1:53
  Since tech is feeling a bit jittery , my first recommendation is to look at a broader safety net .
• 1:59
  Instead of just focusing on the QQQ , consider the Vanguard Total Stock Market ETF , ticker VTI , or the iShares Core S&P 500 ETF , known as IVV .
• 2:12
  This gives you more exposure to the industrial sector .
• 2:15
  For example , Caterpillar , ticker CAT , has been a superstar this year because all those AI data centers need physical infrastructure to run .
• 2:24
  Second , let's look at the housing market .
• 2:27
  With those mortgage rates coming down , the real estate sector is looking a lot more attractive .
• 2:33
  You might want to check out the Vanguard Real Estate ETF , ticker VNQ , for a mix of commercial and residential property exposure , or keep an eye on Rocket Companies , ticker RKT , for their techforward approach to home buying .
• 2:47
  Third , let's talk about bonds .
• 2:50
  The Federal Reserve is currently holding rates steady , but a cut is expected by July .
• 2:56
  To prepare for that , the iShares 20 plus Year Treasury Bond ETF , or TLT , is a great tool to capture some upside as those yields start to fall .
• 3:07
  Finally , do not forget the rest of the world !
• 3:10
  While the U.S.
• 3:11
  has been the leader for a long time , 2026 is showing us that international markets are catching up .
• 3:19
  Allocating a portion of your portfolio to the Vanguard Total International Stock ETF , ticker VXUS , can help you tap into growth in places like Japan and Europe where valuations are a bit more reasonable right now .
• 3:32
  That is all the time we have for this morning's update .
• 3:35
  Remember to stay patient , stay informed , and as always , keep an eye on the charts .
• 3:41
  I am Barnaby Bulls , and this has been Spy Trader .
• 3:45
  Have a wonderful Friday and a great start to your weekend !