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Navigating Inflation and the AI Boom · The SPY Trader

• 0:00
  Good morning and welcome to the Spy Trader podcast !
• 0:03
  I am your host , Bucky Buckets , here to guide you through the markets as you get your day started .
• 0:09
  It's 6 am on Thursday , March 12th , 2026 .
• 0:14
  ( Pacific ) .
• 0:15
  We have a lot to talk about today , so let's get right into the thick of it .
• 0:19
  The stock market is navigating a bit of a tricky landscape this morning .
• 0:24
  While the S&P 500 has been on a massive bull run over the last year , reaching near the 6,750 level , we are seeing a slight retreat today .
• 0:34
  Currently , the SPY ETF is trading around 6,748 points , which is down about point fourone percent .
• 0:42
  We are seeing a bit of a mixed bag elsewhere , too .
• 0:45
  The Nasdaq100 , or the QQQ , is showing a lot more resilience , mostly because of some incredible strength in the tech sector On the other hand , the Dow is hitting a fourmonth low .
• 0:57
  A big reason for the mood change is the latest inflation data .
• 1:01
  The Consumer Price Index report came out showing headline inflation at two point four percent and Core CPI at two point five percent .
• 1:11
  This confirms that the fight against inflation has hit a bit of a stalemate , and it looks like those interest rate cuts we were hoping for might be delayed even further .
• 1:21
  At the same time , geopolitical tensions in the Middle East are pushing energy costs higher .
• 1:27
  WTI Crude oil has climbed back above ninety dollars a barrel , which is fueling more inflationary fears .
• 1:34
  Now , let's look at some individual winners and losers .
• 1:38
  Oracle , ticker ORCL , is the absolute star of the show .
• 1:42
  Their shares jumped ten percent in the last twentyfour hours after they reported quarterly revenue of seventeen point two billion dollars .
• 1:51
  Even more impressive is their backlog of work , which stands at over five hundred and fifty billion dollars !
• 1:58
  This shows that the demand for AI is still in its early innings .
• 2:02
  Nvidia , ticker NVDA , is also hitting new thirteenweek highs as they continue to dominate the chips needed for all this data center expansion .
• 2:13
  However , sectors like Real Estate are struggling .
• 2:17
  The VNQ ETF is lagging because higher interest rates and rising energy costs for building management are weighing heavy on REITs .
• 2:27
  So , what should we be doing with our money ?
• 2:29
  For your core portfolio , it might be time to look at your diversification .
• 2:34
  While the broad market growth is slowing , the earnings power of big tech is still superior .
• 2:41
  I recommend keeping your core holdings in the Vanguard S&P 500 ETF , ticker VOO , but you might consider rebalancing some gains into the Invesco QQQ Trust .
• 2:52
  Given that oil is above ninety dollars , a tactical hedge is a smart move to offset the inflation tax on your portfolio .
• 2:59
  You might want to increase your exposure to the Energy Select Sector SPDR Fund , ticker XLE , or individual names like ExxonMobil , ticker XOM .
• 3:11
  This acts as a natural cushion against the geopolitical volatility we are seeing right now .
• 3:16
  When it comes to bonds , since inflation is staying sticky at two point five percent , longduration bonds are looking risky .
• 3:24
  I suggest shifting fixedincome away from longterm treasuries like TLT and moving toward shorterduration funds like the iShares Core U.S.
• 3:32
  Aggregate Bond ETF , ticker AGG .
• 3:36
  These are less sensitive to the inflation surprises we saw in today's report .
• 3:42
  Finally , for an individual stock pick , Oracle remains very attractive .
• 3:47
  Even after that ten percent jump , analysts are raising price targets because Oracle has successfully shifted its database legacy into a hypergrowth cloud business .
• 3:57
  That is all for this morning's update on Spy Trader .
• 4:01
  Stay safe out there and keep those portfolios balanced !
• 4:04
  I am Bucky Buckets , and I will be back in a few hours with more updates .