Latest / The SPY Trader / Goldilocks Markets: Navigating AI and the 2026 Soft Landing
Transcript
- 0:00Hello there and welcome back to the Spy Trader podcast !
- 0:04I am your host , Sunny Sideup , and I am so glad you could join me this afternoon .
- 0:09It is currently 2:30 pm on Monday , October 5th , 2026 , out here on the Pacific coast .
- 0:16We have a lot of exciting ground to cover today as we look at a market that is feeling a sense of cautious optimism .
- 0:23We are currently navigating what many are calling a soft landing success .
- 0:28After a lot of volatility in previous years , inflation has finally settled down near the 2.2 percent mark , and the Federal Reserve seems happy to keep interest rates steady at 4.25 percent for now .
- 0:42The big news from the October 2nd jobs report showed 165,000 jobs added , which is a goldilocks number that suggests the economy is steady without overheating .
- 0:55Over in the bond market , the 10year Treasury yield is hovering around 4.0 percent , which is making the TLT iShares 20 plus Year Treasury Bond ETF look attractive again as a hedge .
- 1:07Looking at the sectors , Technology is still the big star .
- 1:11The Invesco QQQ Trust is up 14 percent so far this year .
- 1:16We are seeing companies move from just talking about artificial intelligence hype to actually showing us the earnings .
- 1:24NVIDIA recently announced its Rubin architecture delivery schedules to maintain its dominance , and Microsoft is seeing a significant jump in subscriptions for its AI Agents for business workflows .
- 1:36If you want to play this sector , the XLK Technology Select Sector SPDR Fund is a great core choice .
- 1:44For specific stocks , you might look at ServiceNow or Oracle as they successfully turn AI infrastructure into software revenue .
- 1:53Over in Healthcare , the XLV ETF has been a steady grower and has actually outperformed the S&P 500 recently .
- 2:02A lot of this is thanks to the GLP1 revolution .
- 2:06Companies like Eli Lilly and Novo Nordisk are reporting record earnings as they expand production of weightloss and cardiovascular treatments .
- 2:15It is a mustown for 2026 to provide a buffer for your portfolio .
- 2:20Real Estate is also making a huge comeback after being hit hard by high rates in the past .
- 2:26With mortgage rates stabilizing around 5.5 percent , homebuyer demand is returning .
- 2:32The Vanguard Real Estate ETF , known as VNQ , is offering an attractive yield of about 4.1 percent right now , making it a solid recovery play .
- 2:42In other company news , Apple is gaining momentum with rumors of a new AIintegrated iPhone and a Vision Pro 3 coming for the holidays .
- 2:52Tesla has shifted its story toward its Robotaxi fleet expansion in three major cities , and JPMorgan Chase remains the gold standard in banking as it benefits from improved profit margins .
- 3:05So , what should you do with your money ?
- 3:07If you are an aggressive growth investor , stick with the QQQ and those AI pick and shovel plays like NVIDIA because tech is still the main engine of global growth .
- 3:19For a more balanced approach , look at the Vanguard Total Stock Market ETF , or VTI , and maybe some international exposure with VXUS to catch growth in emerging markets like India .
- 3:31If you are looking for income and stability , the iShares Core U.S.
- 3:35Aggregate Bond ETF , or AGG , and the VNQ Real Estate ETF are your best bets .
- 3:42With the Fed on pause , bond prices are stable and yields are very attractive .
- 3:48Overall , my big recommendation today is to use a barbell strategy .
- 3:53Combine highgrowth Tech via the QQQ with the high stability of Healthcare via XLV and some fixed income through AGG .
- 4:02This keeps you protected from any sector bubbles while ensuring you participate in the ongoing AI productivity boom .
- 4:09Thanks for listening to Spy Trader , I am Sunny Sideup , and I will check back in with you in a few hours !