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Market Normalization: Profiting from the 2026 Shift · The SPY Trader

• 0:00
  Good morning , everyone !
• 0:02
  I am Sunny SideUp , and you are listening to Spy Trader .
• 0:05
  It is exactly 6 am on Monday , March 23rd , 2026 , out here on the Pacific coast .
• 0:13
  I am so glad you could join me for our morning market checkin .
• 0:16
  We are currently navigating what analysts are calling the Normalization Phase .
• 0:21
  Remember that wild ratehiking ride of 2024 and that massive AI Gold Rush of 2025 ?
• 0:29
  Well , the dust is finally starting to settle , and the market is getting back to basics : sustainable earnings and practical applications .
• 0:38
  Let us start with the big picture .
• 0:40
  The Federal Reserve wrapped up its meeting last week and decided to keep the interest rates right where they are , between 3.75 percent and 4 percent .
• 0:50
  Inflation has cooled down to about 2.3 percent .
• 0:55
  It is not quite at that 2 percent goal yet , but it is consistent enough that everyone is breathing a little easier .
• 1:01
  Because of this , we are seeing a lot of folks moving into the iShares 20 plus Year Treasury Bond ETF , or TLT , to lock in those yields before any cuts later this year .
• 1:13
  If you are looking for a safe harbor , the iShares Core U.S.
• 1:16
  Aggregate Bond ETF , known as AGG , is still the goto while the stock market stays a bit jumpy .
• 1:24
  Moving over to the sectors , technology is still the star of the show , but the script has changed .
• 1:30
  Last year was all about the hardware , but now we are focused on software monetization .
• 1:36
  Nvidia is still a giant , but it is facing some pressure as cloud providers start making their own custom silicon .
• 1:44
  On the other hand , Apple and Microsoft are acting like the new stability plays .
• 1:50
  Apple’s Vision Pro 3 and that new integrated Siri AI have really given people a reason to be excited about consumer tech again .
• 1:58
  If you want to play this sector , the Invesco QQQ Trust is a great way to stay involved , but look for companies that use AI , not just those that build it .
• 2:08
  Do not sleep on healthcare !
• 2:10
  The Health Care Select Sector SPDR Fund , or XLV , is our secondbest performer so far this year .
• 2:18
  Eli Lilly and Novo Nordisk are still leading the charge as their weightloss drugs get approved for expanded uses like heart health .
• 2:26
  Plus , we are seeing a huge spark in midcap biotech thanks to FDA breakthroughs in CRISPR gene editing .
• 2:33
  Now , let us talk about some surprising moves .
• 2:36
  We are seeing a massive shift back toward nuclear energy .
• 2:39
  Companies like Constellation Energy are seeing a spike because AI data centers need so much power that they are turning to modular reactors .
• 2:49
  And while the big tech names are dealing with some antitrust headlines from the DOJ , which might make the Vanguard S&P 500 ETF a bit volatile , international markets are actually picking up the slack .
• 3:02
  The Vanguard FTSE Developed Markets ETF has been outperforming the S&P over the last month because the U.S.
• 3:09
  dollar is softening and valuations in Europe and Japan look pretty attractive .
• 3:15
  So , what is the game plan ?
• 3:17
  I am recommending a Barbell Strategy to balance growth and value .
• 3:21
  For growth , keep your eyes on the Invesco QQQ Trust .
• 3:26
  Specifically , look at Amazon .
• 3:28
  Their AI integration in AWS and logistics has pushed their margins to tenyear highs .
• 3:34
  For income and stability , check out the Schwab US Dividend Equity ETF or the Vanguard Real Estate ETF , known as VNQ .
• 3:44
  Real estate has been quiet for two years , but with rates steady , it is finally bottoming out and offering a 4 percent yield .
• 3:52
  JPMorgan Chase is another fortress play here with a great dividend and record interest income .
• 3:58
  Finally , for a little insurance , there is always gold .
• 4:02
  The SPDR Gold Shares , or GLD , reached new alltime highs this month near 2,450 dollars an ounce because of global tensions .
• 4:13
  It is always good to have a little shine in your pocket when things get uncertain .
• 4:17
  Just a final heads up , 2026 is a midterm election year , so expect some bumps in the road in the second half of the year .
• 4:25
  Keep your portfolio balanced with something like the Vanguard Total Stock Market ETF and stay disciplined out there .
• 4:32
  That is all for this morning's update on Spy Trader .
• 4:36
  I am Sunny SideUp , and I will see you in a few hours !