Bull Market Begins! 2026 Stock Market Rally CONFIRMED

The stock market obviously shot straight up yesterday, but earlier in the week, we saw a bunch of declines in the market. Palantir fell from $175 down to $145. Nvidia fell from $182 to $169. AMD fell from $177 to $159, and many others. Certain ETFs were down too, like QQQM, SMH, and even the S&P 500. Then yesterday, obviously, the whole market shot straight up, and I think this is just the beginning. Did you buy something on sale this week? Let me know down in the comments section down below. I bought all three of my ETFs in the 3ETF portfolio, and then also grabbed some extra SoFi on a slight sale. My heavy buying into Berkshire Hathaway over the past couple months, while it was in the 470s and really, really heavy when it hit around $450, has already started to pay off strong now that BerkB rose about 5% from its lows recently, and I firmly expect it to be back over 500 very soon. Now, this week's news points to heightened market sensitivity across several fronts, retail earnings, bond yield dynamics, tech-related uncertainty, and upcoming monetary policy signals. The Jackson Hole outcomes and shifts in bond market sentiment might prove pivotal in shaping near-term market direction. Some of the biggest news obviously comes from what was said yesterday by Fed Chair Powell at Jackson Hole. Speaking at Jackson Hole gathering, Jerome Powell says balance of risks appear to be shifting. Powell cited risks that inflation will continue rising and that the labor market will keep weakening. He called that combination unusual and suggested it could prompt the Fed to support economic growth by reducing rates. "'The balance of risks appears to be shifting,' Powell said. "'While labor markets appear to be stable, "'it's a curious kind of balance that results "'from a marked slowing in both the supply of "'and demand for workers.'" When we look at the CME FedWatch tool, it's obvious that most people believe that we will have the rate cut next month in September with almost 90% certainty, and I'd expect that to get even higher in the coming weeks. Then when we look at October, it looks like many believe we'll see at least one more cut quickly too. When we look at this time next year, this is where it gets very interesting because we're starting to see that many are believing we'll see those rates really drop. To go down to 275 to 300 from where we are now, which is 425 to 450, that's very drastic, and a lot will look way different in less than about one year if that happens. While this is gonna affect a bunch of the stock market, one specific area of the stock market and one type of asset is gonna be affected the most, and that group is what's gonna really start soaring. And I'm gonna go over that later on in this video, so stick around, because you don't wanna start investing in that ETF or that style of asset once it's already gone up. You wanna get in on the ground floor as it's starting its takeoff. So in other news, Wall Street got minutes from the July Federal Open Market Committee meeting on Wednesday, which showed central bankers were divided on how to approach interest rates while balancing risk to the labor market. Many on Wall Street worry tariffs will send inflation spiking in the second half of this year. After Walmart's latest earnings disappointed investors Thursday, CEO Doug McMillan said on the firm's earning call that as the company replenishes its inventory, tariffs are increasing costs by the week. He added that lower and middle income households are starting to adjust their shopping habits in response. If this is true, this is not good. This is consistent with what happens during a recession. People start to stop spending as much as they did, and overall, if everyone stops spending, that's not good. That's economic slowdown, that's recession territory. Walmart stock plunged over 4% after reporting a miss on profits despite raising full year guidance. The CEO, like I said, warned tariffs are likely to weigh on second half results, fueling investor concerns about the cost environment affecting retailers. This led to a fifth straight daily loss for major US averages, like the S&P 500, the Dow, and the Nasdaq. Then something kinda crazy happened earlier this week as well, like I was talking about at the beginning of this video. Those tech stocks really had a big sell-off, and it wasn't just concerns over what might happen with the Fed rate. It was something a little bit different. A slight but notable tech sell-off was triggered by an MIT report finding 95% of companies see zero return on investment from generative AI investments. While the methodology has been questioned, the alarm has unsettled markets already on edge. Moreover, concerns are mounting about potential government interference, including equity participation in chip makers such as Intel under the CHIPS Act framework. These developments are adding to a volatile feeling around the tech and semiconductor sectors. I've been saying this for a little while now, but we wanna be careful in this tech sector. I don't necessarily believe that tech or AI or any of this other stuff is going to slow down as far as what we need on a daily basis, and I do believe that technology is gonna continue to evolve, but as far as investing in it, it is looking moderately bubble territory, and so we just need to be careful that you don't have all of your money in just tech or just growth, even though it seems like that's the easy money right now. ETFs with high exposure to tech, AI, or growth sectors have faltered amid rotations, regulatory worries, or fading enthusiasm. SCHD-containing sectors like energy and healthcare may be holding up better or recovering faster as investors rotate into higher-yield, lower-volatility stocks. In short, SCHD is outperforming due to its defensive tilt, reliable dividend income, and broader sector composition. While other ETFs, especially growth-heavy ones, may be slipping amid volatility, SCHD's stability and income focus make it a relative winner right now. Like I said earlier in this video, there may be one group of ETFs and stocks that are absolutely going to be taking over, and the market is absolutely going to shift into this as a strength very, very soon. This group has a strong correlation to the fact that when rates drop, these types of ETFs go up. And that would be the value-style assets or the ones with qualified dividends. These types would be defensive stocks or recession-proof-style stocks, and then also ETFs like SCHD or VYM. This is why SCHD increased over 1.5% in a day yesterday after the news and is up almost 3% over the past month as people start to price in the fact that the rates will be dropping soon. QQQM is only up about 1.7% in the past month. So this is a big deal. Now let's talk about the bond market risks because this is actually huge and not a lot of people are talking about it, so let me fill you in. Strategist Albert Edwards warned of a creeping crisis in bond markets. Rising long-term yields, particularly in the UK and Japan, are rendering equities relatively expensive. This undermines the there-is-no-alternative, or TINA, paradigm that has supported stock valuations. Edwards emphasized that stretched tech valuations and compressed cash flow yields add to downside risks. So higher yields possibly might start pulling people out of tech, which these people in tech have made a huge profit, and so they're going to be smart and lock in their profits, sell out, and move into possibly these higher bond yields down the road, or, like I said, go into something like SCHD or VYM that gives you a very solid yield but also brings you downside protection. Chris Watling, chief strategist at Longview Economics, cautioned that despite indices being just 1.5% below recent highs, signs like low trade volumes, inflated valuations in 20% of stocks, booming meme stock activity, rising margin debt, and stressed liquidity suggest fragility under the surface. He's tactically neutral heading into September, favoring defensive sectors like healthcare and staples. Again, this supports the idea that if you're heavy in tech right now, I would just hope that you would start to reconsider and try to figure out if you are too risky. If your investing horizon is very long-term, something like 10-plus years or something, then you can just go business as usual. You may see some volatility, but I do believe that 10 years from now, tech is still going to be something that would have been a good thing to have in your portfolio. But I do believe that the next couple of months and definitely in the next year or two, it's gonna be very, very smart for you to have a portion of your portfolio in those value-style ETFs. Wealthy investors and institutions are looking for a very solid place to park their money because as of right now, a lot of them have that in high-yield savings accounts or money market accounts or things getting them a guaranteed 3% or 4%, but as soon as the Fed starts actually cutting rates as aggressively as I think that they may, then they're going to be taking it out of those things since those things are gonna be less favorable, only giving out 1% or 2% on yield, and they're gonna move it into something like SCHD where they're getting a 4% yield with a low beta, low volatility, so that's the next safest place for them to put their money. SCHD is still a solid buy as it's up only 2.75% this year to date, while growth ETFs and the S&P 500 are all up over 10% this year to date, making SCHD the best value right now, along with the fact that the trend should be more and more money piling in over the next year. Today's Saturday, August 23rd, 2025. Don't let me come on here in six months and tell you that I told you so and then you wish that you would have done so. I'm buying SCHD like crazy, just like I've been doing all year and really over the last year or two while it's been stagnant and everything else has been growing like crazy. It's been obvious to me that that's the value, that's the sale right now, it just hasn't been very fun to be investing in something that stays pretty stagnant. But we don't invest for just right now or in the next couple of weeks, I'm investing for very long term and I expect this to be up like crazy even in the next six months. To go over and understand my three fund portfolio and to be able to invest in something super simple that keeps you covered no matter what the market's doing, watch this video here. And if you've already watched that one or if you understand or already investing in the three fund portfolio, then watch this video to keep you going strong in investing. Remember to keep investing simplified.