Did you know that even if you have a 401(k) for retirement, you could still have an IRA? Robinhood has the only IRA that gives you a 3% boost on every dollar you contribute when you subscribe to Robinhood Gold. But get this, now through April 30th, Robinhood is even boosting every single dollar you transfer in from other retirement accounts with a 3% match. That's right, no cap on the 3% match. Robinhood Gold gets you the most for your retirement thanks to their IRA with a 3% match. The offer is good through April 30th. Get started at Robinhood. Com/boost. Subscription fees apply. And now for some legal info, Claim as of Q1 2024, validated by Radius Global Market Research. Investing involves risk, including loss. Limitations apply to IRAs and 401(k)s. 3% match requires Robinhood Gold for one year from the date of the first 3% match. Must keep Robinhood IRA for five years. The 3% matching on transfers is subject to specific terms and conditions. Robinhood array available to US customers in good standing. Robin hood Financial, LLC. Members, Sippik, a registered broker dealer. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand.

It's time for some money rehab. What a crazy week for the stock market. We ended last week with the S&P 500 hitting an all-time record high. It was an upward that was fueled mostly by tech, particularly NVIDIA and Alphab, two of the companies that are in the S&P 500. Now, you'd think breaking a record would be the biggest story in market news for a while, but no, there is more to unpack everything that's been going on in the market this week and what we can expect in the upcoming weeks. I'm talking to Peter Tuckman, also known as the Einstein of Wall Street and the host of the MNN podcast Trade Like Einstein. When Peter and I spoke yesterday, he was calling me from the balcony of the New York Stock Exchange, so you'll definitely some of the hustle and bustle around him. He is literally in the action, which makes him one of my favorite people to talk to when the market goes wild, and it often does. Here's our conversation. Peter freaking Tuckman. Welcome to Money Rehab.

Yeah, baby. I'm here. It's good to be here. Yeah, baby.

You're like the godfather of M&N, or like the mascot. I can't decide. One of the two. One of each. That's right. So big news. A week ago, February ninth, the S&P 500 reached a new historic high. What was this historic high? Why did it happen? What was going on over there on the floor that day?

Here. So even though we had teased and flirt with 5,000, we had not closed above it until the day you said- So easy come, easy go, right?

We had this big day for the S&P. It was just this Tuesday that the Dow fell 500 points. It made it the worst day in about a year, right? So why did that happen? Why did we have The SMB reaching historic highs and then the Dow going in the pooper.

Okay. Look, the market has rallied. We are six weeks into the year. We've had only one bad week so far in 2024. The market is forged on after a really great 2023. The tech stocks have been leading participants in this major rally. Look, there's a lot of enthusiasm, a rational enthusiasm. It turns out that I did a little analysis. The last time that the interest rates were as high as they are and we were in a bull market, was before the bubble of 2000. In the late '90s, apparently, we were in around 5 or 6% interest rates, and the market rallied quite significantly up until we ended up having the tech bubble and the Internet bubble, and we blew up. Look, markets tend to reach towards milestones and landmarks. Then sometimes, if it happens fast and furiously, they can often be over extended on the upside or the downside, whichever side we're going towards. Sometimes those milestones become resistance. I don't think that's what happened here. It was clear that there was a lot of expectations around the CPI number. That's the number we get every month around how hot is inflation. I saw one of the great headlines was after we hit 5,000, the next day, the CPI number came out, and it said, Hot CPI number pours cold water on the market, which is clearly what happened.

There were such expectations, especially by the media, that we were going to get a number below 3%, right? It's important for us to know we're coming down from 8% and change, which was a crazy inflation number, and we've gotten down to 3.1%. But the markets run on expectations and the delivery by whether it's guidance and earnings or whether it's economic data. They were pushing us to have all eyes on this CPI number that we were going to, for the first time, to break 3%. It's a 10th of a %, we just didn't break it. And so those expectations, everyone bought into that buy the rumors, sell the news. They bought into that, hoped that we were finally going to break 3% for the first time. And that meant that the Fed was going to be able to cut rates in Q2 or whatever, and they came in shy by two-tenths of a %. And so this market is basically the movements, the trade. There's such a huge tranche of traders in the market that when they love something, they will buy it with abandon. We're seeing stocks like Arm, and NVIDIA going up 50, 100 points in a day.

So when they love something, they buy it with a rational enthusiasm. When they sell it, they sell it with abandon. And it is not a very forgiving market. That happened to be the day before that we hit the record high. We had closed there. Then the CPI number came in and they just said, You know what? I want out of this right now. A lot of traders started to dump. I would imagine a lot of people who bought the rumor decided to sell the news, and that's why it happened. What's important to note is the follow-through. The day we sold off 800 points on the DAO and almost 90 handles on the S&P, we did not close on the lows of the day. So I trade the S&P. That's my specialty. And we were down 98 handles, I think almost 100 handles around 3:50 in the afternoon. Right into the close- Handles are points. Handles are points. Handles are points. It's a term we use here on the floor.

You're so fancy.

I don't know where the handle term came from, but that's what they're called down here. Anyway, they rallied 30 points, 30 handles, and closed right into the last 10 minutes of trading, which really meant often when you'll see a down day and the market closes on the lows of the day, more times than not, the next day is a gap down day, which can be a bit of capitulation. That day, we did not close on the low. The day we had a huge rally in the last five minutes of trading. I think That set us up, set the runway up for the rally we've seen now two days in a row. Today we were up, yesterday we were up. And it seems like that was just a one-day affair. It was an over-emotional reaction to a CPI number that wasn't that bad. And I think we're off to the races again.

And so let's give listeners a little refresher. When you say CPI, it's showing where inflation is going. So when inflation goes up, which industries tend to feel the most pain?

Well, look, consumer staples, for one, right Right now, all eyes are on the state of the consumer. Look, we have to realize that there's sometimes the economy and the markets don't trade in concert. We'll see an economy that's a bit sluggish. We're looking at a consumer base that has the highest credit card debt that I think we've seen in decades. But I think it's important to note that where we came from, we were at 8% in change. We were almost $5 on gasoline. I don't blame anybody for it, which clearly was a function of the pandemic. I'm a firm believer we did not throw $3 trillion into the economy when we did around the pandemic. We got back to even. The pandemic was in March, April, May was the beginning of it, 2020. We were back to even by August 19th because we threw $3 trillion into the market over three months. In the crash of 2007, and I will call it a crash, it was very significant, they put $800 billion into the market as a stimulus, and it took nine years to get back to even. So I'm a firm believer If we didn't do what we did, and a lot of people don't like Jay Powell and they felt he's just printing money, I think if we didn't do what we did, we'd all be on breadlines right now.

I think we really did the right thing. We've gone from 8% in change inflation, and I think we were there. We were and real highs to 3%. So I think we're doing a lot of that. That's a huge move down, especially when our goal is 2%. So I don't know what everybody's complaining.

Yeah, I think it's really smart to remind folks also that the economy is not Wall Street. They can be two different beast and do two different things. What are people, though, saying on the street about what the Fed's going to do with interest rates when they meet in March?

Okay, so for some strange reason, and it's not what I heard, Nobody hears different things when they listen to the Fed. Obviously, we have one meeting where we talk, whether we change the number or we keep the number flat. Then we have a news conference, which is where the nuance of Jay Powell's language is so important, whether it's Hawkish or dovish. Recently in the last meeting, obviously, we stayed pat on the number. We didn't raise it or lower it. However, he did say, and I don't know, it caught everybody by surprise, I did not get the sense that we were looking at an interest rate cut in March. I thought we were looking at probably the later part of Q2, but obviously, I guess expectations were around it, and he made it very clear. He tossed that out onto the table that nothing's going to happen in March. It's a data-driven decision making. But he said, I don't think no matter what happens, are we going to change it up in March? And we're probably, I think there's a 44% chance that we'll have one in May, an 11% further chance there'll be another one, I think, in July.

So I think that's where we're at. I think each month we're going to see there's still a lot of information that we're going to see. Our earnings season was quite reasonable. The market is clearly responding quite well to everything. No matter, look, we just saw a down day of 800 points, right? And there was no follow to go through on it. That means, like I've always said about crashes and pullbacks, is that all of these things are nothing more than buying opportunities. Use the word crash and start singing the praises of doomsday like we did suddenly two days ago, the overreaction, the catastrophism of an up day of a thousand and a down day. This is the norm. It's not the exception to the norm. Down 800 day is not actually a big deal in the world we've been living in for the last couple of years. Literally for the last four years, we've barely ever seen less than a 1% move in the market. So I think the media tends to love to catastrophize everything.

So, yeah, basically it's like two steps forward, one step back. This is how the market works. But ultimately, we're trending forward.

Correct. And that's a healthy market. That's a healthy way to trade when we're day trading stocks. We want stocks to be going up and we want them to pull back. That's how you build a foundation in markets, in economies, and in everything. I mean, that's the way it is. And so it's two steps forward and one step back. I don't like to predict what's going to happen. Look, if I have learned anything over the last number of years, anything can happen. Anything can happen in the market, anything can happen in the world, and anything can happen in the stock. We are seeing stocks go from ARM, for instance. It went public in September at 50 bucks. Everybody didn't like it. It pulled back to 35. It's now trading at 170. Just now, NVIDIA announced that they took a stake in the company. The AI revolution is off to the races. The amount of money that is being put into AI is in the trillions, and it's really a revolution. And that the things that we thought of, the world of the Jetsons, let's say, robots and all that stuff. It's not 2050. We're talking 2025.

We're going to start seeing flying cars and all this wild stuff. So I think it's important. That's one of the things that's fueling the market. We in a big way. Right now, the market is telling me it feels like it's going higher, but it can be dislocated as we just saw. One CPI number, one bad thing that can happen globally, any number of things, a big hack, can completely dislocate it. But net-net, I think that those things that we've seen when that happens are pullbacks, and they're not the norm, they're the exception.

Yeah, market is such a sensitive flower. Hold Hold on to your wallets. Money Rehab will be right back. Did you know that even if you have a 401k for retirement, you could still have an IRA? Robinhood has the only IRA that gives you a 3% boost on every dollar you contribute when you subscribe to Robinhood Gold. But get this, now through April 30th, Robin hood is even boosting every single dollar you transfer in from other retirement accounts with a 3% match. That's right, no cap on the 3% match. Robin hood Gold gets you the most for your retirement thanks to their IRA with a 3% match. The offer is good through April 30th. Get started at Robinhood. Com/boost. Subscription fees apply. And now for some legal info, claim as of Q1 2024, validated by Radius Global Market research. Investing involves risk, including loss. Limitations apply to IRAs and 401(k)s. 3% match requires Robinhood Gold for one year from the date of the first 3% match. Must keep Robinhood IRA for five years, The 3% matching on transfers is subject to specific terms and conditions. Robinhood IRA, available to US customers in good standing. Robinhood Financial LLC member, Sippik, a registered broker dealer.

As a small business owner myself, or as I like to call it, a pre-big business owner. I know how critical hiring is to the success of a company. When you have a pre-big business, hiring isn't just adding a new employee, it's adding a new family member. The problem I run into is that I don't have the time or the resources to give hiring the it deserves. That's why I love LinkedIn jobs. Linkedin isn't just another jobs board. Linkedin is a vast network of more than a billion professionals, which makes it the best place to hire. It gives you access to professionals that you can't find anywhere else. Linkedin does all of that while making the process easy and intuitive. Hiring is easy when you have that many quality candidates. So easy, in fact, that 86% of small businesses get a qualified candidate within 24 hours, and it really works. 2.5 million small businesses use LinkedIn for hiring. You can post your job for free at linkedin. Com/mnen. That's linkedin. Com/mnen, as in Money News Network, to post your job for free. Terms and conditions apply. And now for some more money rehab. Okay, so fine, we won't predict the future, but we can do a vibe check, and that's really what the VIX tells us.

So for our listeners who don't know, can you explain what the VIX is? The VIX jumped. Why do What do you think that is? What are the factors responsible for that? And what will that tell us about where the market's going?

Okay, so the VIX is a fear index. It's supposed to basically trend to zero. So when it goes up like that, it goes there for a number of different reasons. It basically can be used as a hedge. You don't trade the VIX as an entity itself. You use the VIX as a way to protect yourself against possible disasters. When you've got a portfolio that is along the market, and you really want to hedge yourself against a potential of... Because as I said, if I've learned anything in the last number of years, anything can happen. We just came through 2023. That was a year we had a major bank crisis. Do we even remember that? No. We are in two massive global wars. Do we remember that? Well, we're living it on a daily basis. But we tend to get jaded by what's going on around the world. So when you see the VIX spike, that's basically Basically, people hedging themselves in a long position against a disaster happening. There are so many moving parts to what's going on globally, economically, and whatnot, that anything can happen. And that's why we're seeing the VIX spike like that.

Now, historically, though, markets, the VIX tend to be an inverse reaction to the market. When the market goes down significantly, you see the VIX spike up. That's once again fear that it's going down. It does happen, though, that the market, that the VIX can be up and the market can be up at the same time. When that happens to me, that's more of a hedge than a fear that the market is going to crash. But let's be clear, again, there are a number of big Wall Street fundits who are saying that we're looking at one of the biggest crashes ever in March. Some guy from Morgan Stanley, there's a number of people out on the street who are touting the crash, and there always are people like that. We always see that when markets are trading at record highs. I always wonder, is that sour grapes? Is that people who never hopped on board and they watched the market? Is that Bitcoin's at 52,000, the market's at 5,000, they never hopped on board, so they're going to start talking about a crash? You never know what that's about.

I don't know. Sour grapes are people shorting the market, so talking their buck.

And there are. There are those inveterate bears who are always talking about doomsday and always who are short the market. And those people, at the end of the day, when is the pain enough for them to hop back in the market? The market can hang on way longer than most people's portfolios can.

And always listen to those pundits with lots and lots of salt because they have some interest in it. Peter, we end our episodes, as you know, by asking all of our guests for a tip that listeners can take straight to the bank. You have so, so many. What's just one tip today that listeners, investors can do during times of uncertainty?

I love to really talk to people like yourself who are way smarter than me. And I think it's fascinating fascinating to watch. The Russell 2000 is a fascinating index. As the Dow is 30 stocks, the S&P is 500, the Russell is 2000 stocks.

What gave it away?

The breadth of that indices is quite huge. What we saw at the end of 2023 was the Russell 2000 go from a 52-week low to a 52-week high over the last 46 days of the year. Then the first of the year came along and the Russell felt really weak as the market continued to go on. I think there was a nice move in it. People were maybe taking profits or whatnot. But what I invested in my investigation with Dan Ives, I asked him, because a lot of these AI stocks, and I find it fascinating, the whole sector and the fact that he's really clear that this is a revolution. That's his real house. He said that that's going to change our lives in a big way and not in a bad way. I was skeptical that it's outsourcing humans and whatnot. He said, That's really not going to happen. But what I asked him was, a A lot of these names, like NVIDIA. February of last year, NVIDIA was trading at $108. It's trading at $726. So many of these names in the AI space are really way outpriced for a lot of people to trade the market.

So I asked him, Are there any stocks in the embedded in the Russell that have exposure to AI that are more affordable? And he said, Yes, there are plenty. I think maybe that's what's it. And I'm not an advisor, anybody. But it's clear to me from the reconnaissance I've done that AI is here to stay. It is going to be a revolution. There are trillions of dollars being thrown in it. I read right before our interview that NVIDIA has put a lot of money in ARM, which is the stock that just went from 50 to 150 over the last couple of weeks. And another stock called Sound, I think it is, and a couple of other biotech stocks that have exposure to the AI space. I think people need to do their own homework, but I think that they should check out some of these tertiary names, mid-cap, small-cap, that are in that space, because from what I hear, that is going to be the future right now. I think it's going to be a good future because That's not going to help us in the medical space in a big way. But you know what?

The last thing I'll say to you is that from a more humanist point of view, I think that everybody really needs to go out there and ask every Everybody in their world how they're doing. I think everybody is a little bit freaked out at the moment, just in general, all over the world, and surely here in New York and in big cities. If the BIC, the BIC should be the human index right now, I think that's maybe why it's spiking. There's so much fear and anxiety and discord going around amongst human beings that I think people need to check that a little bit. So that's my- Check on your friends.

Tip of the day. I love that. And with people who have money on the sidelines right now because they're seeing and they listen to money rehab so they know don't buy high, buy low. They're keeping their money on the sidelines. Maybe they put money into an IRA before the deadline for last year, but they don't want to put that to work until there's a little bit of a correction. How long do you think people should wait on the sidelines?

You know what? I don't know about a correction. The market tells us what's happening here. We just saw a very short term correction. If there was going to be a correction this week, we just saw a very short term little peak at it. There was no follow through. So I'm a firm believer waiting around for a crash or a correction or a pullback is just not a good thing to do. I think people need to really analyze the space. As I said, an alternative to buying high is to find spaces that are like AI and find tertiary or secondary stocks that are cheaper right now. I mean, one of the I just mentioned, I think, is a three or seven dollar stock. There are stocks in that space that are more affordable for the general public. Look, at the end of the day, waiting around for that to happen, it's not what I would advise people to do, and I'm not an advisor, but I think what you do is you start to buy small. Whatever you do, your first entry into the market in any equity or option should be the smallest inroad into the stock.

Let's say you a lot You're not ready to buy 500 shares or $500 of a stock. You just buy $50 first of it and then $100 first. Your first inroad into a stock, your purchase should be the smallest amount of all. So that you're always chasing gain. If it continues to go up, then you can average up. But if it continues to fall, then you have some powder to play with on the downside. Never go all in on an equity, especially in a market that it is long in the two. There's no No question about it. We are trading at record highs. And so I think people are... But we've been doing that. We've been hitting milestones every month and every quarter for the last year and change. The last time we saw a correction that was anything significant was 2022, right? Maybe July of 2023, but they didn't last that long. We just had a one-day pullback, and by the end of the day, people were done with it and said, You know what? I'm buying into this down 100, and they scooped it 30 or 40 points. So don't wait around.

Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Lavoy. Our researcher is family homes. Do you need some money rehab? And let's be honest, we all do. So email us your moneyquestions, moneyrehab@moneynewsnetwork. Com, to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram @moneynews and TikTok @moneynewsnetwork for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.