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Transcript

Show Me the AI Money · The SPY Trader

• 0:00
  Good morning and welcome to another episode of Spy Trader !
• 0:04
  I am your host , Penny Profits , and I am so glad you decided to spend a few minutes of your morning with me .
• 0:10
  It is 6 am on Friday , April 17th , 2026 , out here on the Pacific Coast , and we have a lot to talk about as we wrap up the week .
• 0:20
  If you are looking at your screens right now , the vibe in the market is what we like to call cautious optimism .
• 0:27
  The SPDR S&P 500 ETF Trust , or the SPY as we love to call it , is hovering right near alltime highs .
• 0:35
  But , things are moving a bit slower than they were earlier in the year .
• 0:39
  We are in a transition phase , moving away from the pure hype of artificial intelligence and into the earningsproven AI economy .
• 0:48
  Basically , the market is asking these companies to show us the money .
• 0:52
  On the macro side , the Federal Reserve is in a maintenance phase .
• 0:57
  After those three interest rate cuts we saw at the end of last year , the Federal Funds Rate is sitting around four percent .
• 1:04
  We got the latest inflation data earlier this week , and headline inflation is at two point four percent .
• 1:10
  While it is not quite at that two percent goal , the market seems to have accepted this as the new neutral .
• 1:16
  Over in the bond market , we are seeing folks flocking to the iShares 20 plus Year Treasury Bond ETF , also known as the TLT , to lock in yields while they can .
• 1:28
  The labor market is still holding up well , which is great news for the overall economy .
• 1:34
  In the tech world , the spotlight has shifted .
• 1:36
  Last year was all about the chips , but now it is about how companies are actually making money from AI .
• 1:43
  Microsoft reported that its Copilot services are now making up fifteen percent of total Azure revenue .
• 1:49
  That is a huge deal .
• 1:51
  Meanwhile , Apple is seeing a massive upgrade cycle as their Apple Intelligence features finally hit a critical mass of users .
• 1:59
  If you look at the Invesco QQQ Trust , it is actually outperforming the broader market this month because software companies are successfully adding AI pricing tiers .
• 2:10
  It is not just tech , though .
• 2:12
  Big banks like JPMorgan Chase and Goldman Sachs reported robust earnings recently because mergers and acquisitions are finally coming back to life .
• 2:21
  The Financial Select Sector SPDR Fund , or XLF , is one of our top performers this week .
• 2:29
  And in healthcare , Eli Lilly is making waves with a new partnership for a combined weight loss and cardiovascular pill , sending their stock up three percent just yesterday .
• 2:39
  So , what does this all mean for your portfolio ?
• 2:42
  We are currently in what I call a valuation bridge .
• 2:45
  We are trying to bridge the gap between high stock prices and actual cash flows .
• 2:50
  This year , it is all about earnings per share growth .
• 2:54
  If companies miss their targets this season , the market might react pretty quickly .
• 2:59
  However , we are seeing some stability in real estate as companies settle into longterm hybrid work leases , which is providing a nice floor for the Vanguard Real Estate ETF , or VNQ .
• 3:11
  Now , let us get into some concrete recommendations for your morning .
• 3:15
  For your growth core , I really like the Vanguard Total Stock Market ETF , ticker VTI .
• 3:22
  It gives you a piece of the whole U.S.
• 3:24
  economy , including smaller companies that might get bought up by the tech giants .
• 3:29
  A specific stock to look at here is Alphabet .
• 3:32
  It is trading at a lower valuation than Microsoft or Amazon , and their Gemini integration into Android is showing great ad revenue results .
• 3:42
  If you are looking for income and stability , the iShares Core U.S.
• 3:46
  Aggregate Bond ETF , or AGG , is offering a reliable yield of over four and a half percent .
• 3:54
  For a stable stock pick , you cannot go wrong with the fortress balance sheet of JPMorgan Chase , which is benefiting from all that new dealmaking activity .
• 4:04
  Finally , for a bit of a thematic tilt , take a look at the Vanguard Real Estate ETF , the VNQ .
• 4:11
  Real estate has been a laggard , but it is bottoming out , and data centers are in huge demand to house all those AI servers .
• 4:19
  To power that revolution , you might also look at NextEra Energy , ticker NEE .
• 4:25
  They are a leader in renewables and seem undervalued given how much clean energy we are going to need .
• 4:31
  To wrap it all up , the current stance is to hold or dollarcost average into your broad market funds like the SPY .
• 4:38
  If you are heavily up on tech like the QQQ or Nvidia , it might be a good time to trim a little bit and accumulate some fixed income for diversification .
• 4:48
  That is all for this morning’s update .
• 4:50
  I am Penny Profits , and this has been Spy Trader .
• 4:54
  Stay smart out there and have a fantastic Friday !