Midterm results impacting Wall Street

Welcome back. It is 6:23 in today's dollars and cents. Changes in the balance of power in Washington, D.C. created a lot of volatility on the markets this week. What about going forward? Joining us now, local financial advisor Clark Geranen. Good morning, Clark. Happy Friday Pam, happy Friday. It's been a very busy week everywhere including Wall Street. Clearly concerns about tech stocks particularly AI, we saw that huge drop yesterday. Today the Nasdaq headed in the opposite direction, headed higher. What are you looking at right now in terms of adjusting portfolios and advising clients so midterm elections always bring high energy, high emotion and high volatility which we saw this week. Wednesday, we saw the markets soar up, and then yesterday we saw them come crashing back down for the worst day in two years, which was mainly led by those AI and tech stocks. So as we see the blue wave coming this week, I think two of the sectors that we could focus in on that that may have some tailwinds politically, those are going to be something like a clean energy and or health care. So those are the two that I think are clear to have a nice tailwind behind them. But from a bigger picture, if we look at midterm elections all the way back from 1950, if we If we look at all of those, 12 months after the midterm elections, the market has been up every single time, and that's with an average return of 15%. So I think just looking at it in general, you want to look at the big picture and just see that staying invested, regardless of what it is, is probably going to be your best option. Yeah, that's always always good advice. I appreciate that you that you reiterate that the tech stocks in particular, you know, they're going to continue to do well. I know there's a lot of, you know, there were, I think, 40 ballot measures, 41 and 40 of them defeated or passed in terms of restricting data centers in particular. So they're going to rein in some of the spending and controls on AI. But in general, tech has led a lot of investing. And jobs, particularly here in the Bay Area. Do you see that continuing? I do see that continuing. I think this is where it comes back to concentration risk. And I know this is something that financial advisors beat down all the time. And it's just because it's great. You need to have some exposure to AI and these tech companies. But by the same token, if you're over leveraged, it's been great for the past five years. But at some point, some of these companies will be washed out, just like we saw back in the dot com. So some of the companies will continue to do well, and some of them may slow at the growth pace that we've seen over the past few years. And I think that was the concern that we saw with the Democrats taking the House and the Senate was that the pushback on data centers and moratoriums. And that's just really going to... Potentially slow some of the growth. So it doesn't mean an end to the AI story. And I know I've mentioned, I think we're still probably in the third inning of this. So what we saw yesterday isn't the bubble crashing. It's just a potential slower growth trajectory. Yeah. Third inning. Okay. We'll hang tight then. Clark, thank you. And we'll talk more. We'll continue to talk about jobs going forward, clean energy, some of those things that will benefit. So we'll continue this conversation. Clark Guerin, and thank you so much. I look forward to it. Thank you, Pam.