In this engaging episode, Bill Gundersen explores the critical lessons investors can learn from the fluctuating stock market. He discusses the surge in market indexes and the persistent issues in the bond market, shedding light on why identifying growth stocks like Eli Lilly can significantly outperform traditional dinosaur stocks. With a focus on evaluating stock valuations and making informed investment decisions, Bill provides actionable advice for navigating a potentially overvalued market as we approach 2026.
He’s been seen on CNBC, the Fox News Channel, and the Fox Business Channel. His articles can be found on MarketWatch, Seeking Alpha, TheStreet.com, and many other places. He’s the author of the weekly Best Stocks Now newsletter and the inventor of the Best Stocks Now app. He’s president of Gundersen Capital Management. Here is professional money manager Bill Gundersen.
SPEAKER 06 :
And welcome to the Friday, the Friday 12-12-25. We’re going to call today the mega version of the Best Stocks Now show. Make investing great again, right, Barry? We’ll get to that in a minute. We have the market. It’s mixed again. It’s mixed up. The Dow is up 119 points right now. And guess what? The Dow is hitting a new all-time high again today. We better look at those P.E. ratios today. And the NASDAQ, on the other hand, has got another one that’s kind of goofing up the NASDAQ. Yesterday it was Oracle. Today it’s Broadcom. But I wouldn’t worry too much about that. The NASDAQ is down 157, 23,436. The S&P 500 is down 26 points right now, or 40 basis points. The Russell 2000 down a little bit. Boy, the bond market, so much for that rate cut. We’re back up to almost 4.20 this morning. That’s too high. We need to get rates lower next year. Gold is having a very good day once again. Gold has been the most consistent performer. And silver all year long. And my least favorite asset class, Bitcoin. I know a lot of you like it. And I play around with it once in a while. But for the most part, I’m not a fan of Bitcoin. Bitcoin is up a couple thousand right now to, let’s see, Bitcoin is at 92,350. So welcome to today’s Best Stocks Now show with professional money manager Bill Gunderson, president of Gunderson Capital Management, a nationwide fee-based only investment advisory and financial planning firm. And I’m here with Barry Kite. our chartered financial analyst and certified financial planner. There is a lot to talk about today. There’s a lot to learn, too, from today’s action in the market. The first thing we can learn, so much for the rate cut, Barry. The rates are right back up to 4.19. I’ll let you tell the folks why we get a rate cut and actually rates keep going up. What is going on with the bond market?
SPEAKER 05 :
I don’t hear Barry. The market controls the Fed funds rate, and so what we’ve got here is the market controls that 10-year rate, and the market is not believing what the Fed has been saying, really. We’re going to likely need some… purchases from the Fed, maybe some of the old QE to actually move that rate on the 10-year side.
SPEAKER 06 :
Yeah, I mean, the lesson to learn is that the Fed doesn’t really set interest rates. I mean, they can try to guide interest rates, but at the end of the day, it’s the markets. That determines interest rates, and right now they’re demanding 4.19% on a 10-year in order to purchase it. So that’s where we’re at. Now, the Dow hit an all-time high yesterday, and I want to talk about the Dow a little bit here today. When I got into the business in the late 90s, the Dow was at about 3,500 around in there. Now we’re above 48,000. So there’s a lesson to be learned there. Look at how the market has performed. If I had just put money in the Dow and never done anything else, I would have probably done okay, Barry. But I also want to compare the performance of the Dow, number one, with the performance of the NASDAQ because there’s a great lesson there to be learned, number one. And number two, I want to look at the current valuations of the Dow, which broke out yesterday to a new all-time high, and where those valuations are at as we get ready to turn the page on a new year, 2026. And let’s not forget, there’s a big difference between the Dow and the NASDAQ, okay? I’m a guy that leans towards the NASDAQ. With the Dow, you’ve got a lot of dinosaur, soggy stocks in the Dow. And how has that impacted the performance over the years when we compare the Dow versus the NASDAQ, right? So the Dow over the last 10 years has averaged 13% per year, and the NASDAQ has done almost double that. And there’s a lesson there, isn’t there?
SPEAKER 05 :
And there’s some odd construction in terms of how the Dow is a price-based indexed. which actually makes stocks that are priced higher actually have a bigger impact on the Dow versus the S&P 500 or the NASDAQ, where it’s a cap-weighted index. And so, obviously, the companies that have the biggest impact are the largest companies. cap-weighted companies in that space, which makes a lot more sense construction-wise, which makes those indices much more relevant than the Dow. The main thing about the Dow is it’s been around for over 100-plus years.
SPEAKER 06 :
Well, and I think the real lesson to learn is the best stocks now theory, okay? We talk about soggy stocks all the time, which we consider stodgy old growth giants of yesteryear. You can also call them dinosaurs. You take a stock like Disney, and over the last 10 years, because of where Disney is in their life cycle right now and not very good management, Disney has returned zero. Over the last 10 years. And yet the Dow probably has, as I look at the Dow 30, how many dinosaur stocks are in the Dow? Well, I see UnitedHealthcare. I see Cisco, which is way past its prime. Johnson & Johnson is way past its prime. I guess we’ll find out if Philip Rivers is way past his prime this week, right, Barry? That’s right. You’ve got Disney way past its prime. Home Depot is a single-digit grower. IBM is not exactly Palantir these days, is it? You’ve got a few others. Well, Nike. Nike is not exactly a vibrant growing company anymore. Lilly’s not in the Dow. Instead, Merck is in the Dow, which hasn’t come up with the new product in the last two or three decades. And then you’ve got Coca-Cola, which is a 2% or 3% performer. So how does that water down your return over the years if you have soggy stocks in your portfolio? Well, we just did the math. If you just compare the Dow versus the S&P 500… which is actually even a more vibrant index, you’ve done about half of what the S&P 500 has done with the Dow 30. And when you compare it with the NASDAQ, it’s even worse. Let’s take a look at the NASDAQ performance over the years. which is probably the most vibrant of the indexes. And it really points to the fact that you’ve got to own better stocks than these soggy dinosaurs in your portfolio if you want superior returns and if you want to try to achieve alpha. The NASDAQ, on the other hand, over the last 10 years, it’s about 21%, but the Dow’s 13%. And it’s because of the makeup of the Dow and putting those soggy stocks in there. And why do I bring up those soggy stocks? Because we say it all the time. When we see portfolios transferred to us. from the large Wall Street firms. What do we see, Barry? Almost always. Verizon, AT&T, Home Depot, Walmart, you know, just one slow grower after another. Now, these are not bad companies. Johnson & Johnson, they’re not bad companies, but they are not growth companies. They’re not good stocks anymore is my point. And so I think this performance of the Dow over the years really brings home the point of you’ve got to be invested in better stocks than single-digit growers, which the Dow is mostly made up of. And even better yet, you’ve got to find 15%, 20% growers. Now the big question on the Dow, it’s hitting a new all-time high. How about the underlying? We don’t judge the Dow’s valuation by 48,000. We judge it by its P.E. ratio, its price-to-sales ratio, and other ratios. We need to look at that because we’re getting ready to start a new year Should we be worried about where we’re starting 2026 on here in a few weeks with the valuations that we’re currently seeing in the markets? And, you know, not only the Dow, which is a lower P.E. index, but how about the P.E. ratios we’re seeing right now on the S&P 500, which, you know, is going to guide us here as we go into the new year and to what kind of stocks, what kind of risk we have, what kind of opportunity there is. And that’s a big part of the construction of our portfolio. So when we come back, we’re going to take a look at the current valuations and just see where we are. Where are we in relation to 1999 and 2000 when we had the big dot-com bubble? And where are we in relation to the sugar-high COVID money from 2021 when the Fed went on the warpath with all those rate hikes? This is Bill Gunnarsson, Barry Kites, the Best Stocks Now show. We’ll be right back. of today’s Best Docs Now show. You know, Barry, we’ve got something similar going on today that happened yesterday. The Dow was way up, hitting new highs, but Oracle, which is a big part of the NASDAQ, dragged the NASDAQ down. And today, we have the Dow hitting new highs again today, but Broadcom, which is a big pillar in the NASDAQ, It’s down a little bit today, and we’re going to take a look at Broadcom. Personally, I think the sell-off in Broadcom is a great buying opportunity. I think that the little sell-off that you’re seeing there is way overdone. Broadcom, in my opinion, is probably the number two or number three. It depends. NVIDIA is number one, no question about it. Number two is either AMD or Broadcom. And then I think probably Marvell would be the next one. Now, as we look at the Dow this year, you had some pretty soggy performers. UnitedHealthcare was down 33%. Salesforce was down 22%. Procter & Gamble, believe it or not, is getting clobbered lately. It’s down 16% year-to-date. Nike is down 11%. Honeywell is down 9%. You want to avoid soggy stocks. I’ve said it before and I’ll say it again. We do not like soggy stocks. Okay, the forward PE of the S&P 500 right now is 22.75.
SPEAKER 1 :
22.75.
SPEAKER 06 :
Not far from that 23 number. No, and we’ve been seeing that the S&P will get up to about a 23 forward P.E. ratio, and then it starts to back off. That seems to be the ceiling right now. Before I move on to a lot of individual stocks, the other point I would make is not only am I not a fan of owning those big, big dinosaur stocks that are growing by 2% or 3% per year, I’m not a fan of the traditional asset allocation model, which is very predominant in our industry. based on your age. If you’re 70, you should have 70% of your assets in the bond market, right? Well, you know, I’m not a fan of that. I think there’s more to be said than just your age. The biggest bond ETF out there, Barry, which I think is fair to use as a proxy, right? Over the last 10 years, the ETF bond… B-O-N-D, which is a bond fund, has averaged 2.4% per year. 2.4% per year. That’s not very good. I mean, that really waters down if you’re trying to grow your portfolio. to retire on someday. You want internal growth in that thing besides the money that you’re putting away in it every year. And if you’ve got 60, 50, 60% of your money in bond funds, you just have to realize you may have a lot of safety there. But you’re giving up a lot of performance. You’re giving up a lot of, what do you call that, opportunity, opportunity performance.
SPEAKER 05 :
A lot of opportunity cost there, right? I mean, when you look at it, a 70-30 portfolio of bonds to equities, a lot of folks don’t take into account that. Somebody’s pension, Social Security income, those are very bond-like incomes. And so in reality, the value of those income streams should probably be incorporated into that allocation mix.
SPEAKER 06 :
Yes, exactly. I mean, you use a number. Usually it’s about 4%, isn’t it, that somebody can live off of once they retire?
SPEAKER 05 :
That rule of thumb, yeah, roughly 4% to 6%, right? It obviously depends on how much exposure to equities they have during that period, too.
SPEAKER 06 :
Yes. Now, we’re not anti-bond. We just believe in owning the individual bonds until maturity, and that’s a pretty likely outcome, right? High probability outcome versus bond funds, which there’s trillions of dollars in bond funds that have averaged 2.4% over the last 10 years. That’s the average return. So you just have to take that into account.
SPEAKER 05 :
Well, and it ties the crisis, right? Yeah. In times of crisis, it’s been a fleeting, you know, folks who hold bonds sell those bond funds. And, of course, essentially everyone ends up realizing a loss when, you know, if you’re holding, say, an individual bond and you’re willing to hold it to maturity, those interest rate fluctuations or downtimes, scary times in the market don’t really affect you because you know at the end of the term they’re going to give you your par value back. Yeah.
SPEAKER 06 :
Exactly. Okay, what’s one of our favorite stocks still? In fact, I think in the app it’s still ranked in the top ten. You know, it just keeps getting better for Lilly. Lilly now is up another 1.3% today. It’s just shy of a trillion. It hit a trillion. It’s pulled back a little bit. But they had good news on Tuesday. Not only does the weight loss drug help you lose weight, but they were also doing the effects on joint pain, knee pain in particular. And they said while you’re on the drug, your knee pain drops by 70%. which is pretty good. I mean, obviously, as you get older, it’s not just knee pain, it’s elbow pain, it’s neck pain, it’s all kinds of pains all over the place. But anyways, Lilly’s drug also does that. But wait, now there’s news today again on Lilly, and this brings up a point about the Dow here. The FDA is going to fast-track their pill. which I think will just open up the market share. I think there’s a lot of people who are a little reluctant to put a needle in their stomach once a month or once a week, whereas a pill, I think, would be a lot easier. I think it would be easier to sell. So I think it’s just going to get better and better for Lilly. And, you know, as I look at Lilly… A lot cheaper to manufacture. You know, Lilly right now sends their drug to your home. Kind of like an Omaha steak package, right? It’s in a… Yeah, I see something on my porch. I say, oh, good. Somebody sent me a… No, the Lilly drug. You know, and that’s got to be expensive. I mean, it’s dropped off at your door by UPS, I think. And, you know, so a pill at a pharmacy would obviously look better. It would be a lot better. Now, my point is, Lilly’s not in the Dow, right? Merck is in the Dow. Johnson & Johnson is in the Dow. Pfizer is in the Dow. And if you compare those four stocks, and I think there’s something to be learned here also about ETFs, you can buy the pharmaceutical ETF. Okay, you believe in drug stocks. But there’s only one good large pharma stock out there right now, and it’s Lilly. I mean, Lilly is clobbering everybody else. Pfizer has nothing hardly at all in their pipeline. And this plays right into the best stocks now. There’s a couple of things to be learned here. A best stock now doesn’t have to be a tech stock. It doesn’t have to be Palantir. It doesn’t have to be NVIDIA. It doesn’t have to be CrowdStrike. or tech stocks. That just happens to be where a lot of the growth is today. But look at Lilly, who’s not even in the Dow. When we come back, we’re going to look at the performance of Lilly over the last 1, 3, 5, 10 years. But even more importantly, what we forecast over the next five years. Is Lilly still a buy, or did you miss the boat? We’ll be right back. This is Bill Gunderson. Thank you for tuning in to today’s Best Stocks Now, Best Inverse Funds Now show. I put several hours of research in during the wee hours of the morning each day to bring you the very best cutting-edge stories that I can. To get two free weeks of my newsletter, go to GundersonCapital.com. To talk to us about our fee-based only money management services, call us at 855-611-BEST. Now, back to the second half of the show.
SPEAKER 02 :
And welcome back here to the second half of today’s Best Stocks Now.
SPEAKER 06 :
So we’re going to go through the Lilly valuation, the Lilly performance. Then we’re going to look at the overall Dow right now as it hits a new high. And let’s see where those valuations are. Should my left eye start twitching at this point in time with the market so high? Forward PE, price to cash flow, price to book value, price to sales. I know it’s all way up there. which is a little bit of a scary thing, you know. I mean, you have to take that into account. But I tell people when they say, how do you handle an expensive market? Well, you have to find individual stocks within an expensive market that have 80% or more upside potential. And I’m going to give you an example of one right now. I talked about one earlier in Broadcom. And that’s based on my numbers, you know, the consensus estimates, a growth rate, a multiple, and a five-year target price. Despite an expensive market, I think Broadcom can still go higher. Now let’s take a look at Lilly, who’s probably one of the biggest disruptors in my lifetime. I’ve said many times, you know, in San Diego, we used to go to the Del Mar racetrack. We used to see Jenny Craig all the time. The diet industry is a massive industry. You know, the fitness industry is a massive industry. And Lilly has completely disrupted… which I’m a big believer in investing in disruptive types of companies. You want to own the disruptor and not the disrupted. You don’t want to own Weight Watchers. You want to own Lilly. Over the last 10 years, an investment in the Indiana company. It’s been there 100 years. Eli Lilly was a Yankee in the Civil Wars. Somebody corrected me. I said he was a Confederate. He was a Yankee in the Civil War. Went on to form a drug company called Eli Lilly. An investment in Lilly over the last 10 years has earned 30% per year. That’s the average annual return. Now let’s just compare that with Pfizer, okay? which I consider to be a soggy dinosaur of a stock, Pfizer has averaged 2.6%. 2.6 versus 30. Pfizer’s in the Dow. Lilly is not in the Dow. Now, wait, it gets even better for Lilly. Let’s take a look at the last three years, the last five years, which, again, we’re looking in the rearview mirror, but that’s okay. This is the batting average. This is how many RBIs the company has drove in over the last three to five, ten years. Over the last five years, the stock has averaged 46% per year return. No wonder it’s one of our largest holdings. The S&P has averaged 17%. The difference between 17 and 45 is called alpha. You’ve earned 28 points of alpha per year over the last five years by investing in LLY. Over the last three years, it’s up 42% per year. And over the last 12 months, it’s only up 27%. But there’s a little bit of a back story on that. I mean, that’s still double the S&P 500. There’s been a price war kind of going on, Trump going after them, trying to get them to lower their price, obviously. Prices have come down. But in exchange for that, Lilly is going to get Medicare, being able for people on Medicare to – that’s a major win for Lilly in the long run. And Lilly is also on the – Going to argue it’s a major win?
SPEAKER 05 :
For Medicare, I mean, it’s going to reduce health care costs and actually change the cost curve.
SPEAKER 06 :
I totally agree. I mean, how many people are on dialysis? How many people are getting knee replacements, hip replacements or open heart surgery? heart transplants. Think of what Lilly’s drug does for all of that. Okay, now, we just looked at the last five, one, three, five, ten years. Of course, investing is all about now. Would you invest, Bill Gunderson, in Lilly today? Well, I mean, we look to the next five years and we look at the valuation on it to determine that, okay? Lilly is expected to make next year in earnings, let’s see, earnings, I’ve got to go find that here real quickly. I think it’s like $22 per share. It’s big. It’s $32 per share. Okay, by contrast, Pfizer is going to make $3 per share, right? And that’s a 36% increase over the 2025 numbers, too, by the way.
SPEAKER 05 :
Yeah, this year it’s 83%. Yeah, last year they made $13 per share. This year they’re going to make $24 per share.
SPEAKER 06 :
Next year they’re going to make $32 per share. Okay, take your choice. You can own Lilly or you can own Pfizer. We see Lilly in very few portfolios that come to us from Wall Street instead. What do they own? Merck. And they own Pfizer. And more likely than not, almost all of them own Johnson & Johnson. Okay, so if we take that $35.
SPEAKER 05 :
You want to hear the earnings growth for Pfizer?
SPEAKER 06 :
I think it’s negative.
SPEAKER 05 :
Negative two, yeah.
SPEAKER 06 :
And eventually we’re going to find out how many people their vaccine, I mean, they’re doing a whole study on that, right? Not only children, how much damage was done by the vaccine? We don’t know the answer to that. And not only in children, but this week they began the studies on adults, on how much damage was done by their vaccine between Moderna and Pfizer. We don’t know the answer to that, okay? Okay. All right, so if we take those earnings and we extrapolate them out over the next five years, and I’m using a growth rate of 17% per year, which I think is pretty doable. If anything, I’m pretty conservative on that growth rate. Look around. How many obese people, how big of a dent has Lilly put into the global or into the American population in cutting obese? I would just say there’s a big market out there still, pardon the pun. There’s a very large market out there for them to grab. And the price is coming down, and they’re going to have a pill. But even using 17%, I get a five-year valuation of $1,985, which is double where the stock is now. Can Bill Gunderson say that I think Lilly will be a $2 trillion company five years from now? Yes, I do. That’s just based on 17% growth, taking their earnings where they are right now. extrapolating those earnings out over five years and applying a reasonable multiple, $1,985, which gives it 100% upside potential over the next five years in a very expensive market. So you see how you get around an expensive market? Now, that doesn’t mean if the market goes down 53% that Lilly’s going to go up. It’ll probably come down. I mean, the market has a lot to do with the performance of stocks overall, and the market’s definitely going to impact the performance of Lilly. But five years from now, my projections show that Lilly will be a $2 trillion company, not a $1 trillion company. Now, having said that, trying to find stocks like that, it’s not as easy as it was. Remember, Barry, back in January of 2023, after the Fed was done hiking rates, and we said the NASDAQ has bottomed and it’s time to go all in.
SPEAKER 05 :
January 6, 2022, correct?
SPEAKER 06 :
Yes, we have the article to back it up. Okay, now, you know what the forward P.E. of the S&P was at that time? It was 17. So stocks that had 100% or more, you could pretty much throw a dart and find them, right? Now today, you have to really search, but that’s where the app, okay? That’s where the Best Stocks Now app comes in because I screen every single day for stocks that have 80% or more upside potential in an expensive market. and are performing well. And, you know, I just gave you two examples of Broadcom and Lilly are both stocks. And, of course, we own 16 stocks currently in our large cap growth portfolio. So there’s at least 16 of them out there right now, and I have my eyes on a few others. But you just have to – that’s the way to navigate through an expensive market is find those stocks that are the exception – And not the norm. And, you know, to be honest with you, Barry, the most expensive stocks in the market are the Pfizer’s. the Johnson & Johnson’s, the Merck’s, because they’re trading at astronomical P.E. ratios based on very little growth, right?
SPEAKER 05 :
I’ve been making that case. Procter & Gamble is the one I look at all the time, a forward P.E. ratio of 20. Do you want to pay a 20 P.E. ratio for Tide? You’re looking at an earnings growth of… You’ve got earnings growth of, let’s see, down here, we’ve got 2.6% in 2026, 5% in 2027.
SPEAKER 06 :
Yeah, you’re paying 20 times earnings for a 2% grower. When you can buy Lily, a 20% grower at the current rate, or maybe 30%, at about the same P.E. ratio. That’s a pretty easy decision as far as I’m concerned. Okay, we’ll be right back for the final segment of today’s Best Docs Now show.
SPEAKER 04 :
On a winter’s day.
SPEAKER 01 :
Thank you. Thank you.
SPEAKER 06 :
And welcome back here to the final segment of today’s Best Stocks Now show with professional money manager Bill Gunderson. I was going to go over the valuations of the Dow, but there’s another subject here I want to talk about, an individual stock instead. You’re just going to have to wait for the newsletter, okay? Tomorrow morning, I will be updating all the ratios on the S&P 500, which is pretty much the benchmark that we look at. You’ve got to look at the forward PE ratio, which is bumping up against 23 once again. We found that’s been the ceiling over the last five years. We’ve got to look at the price to sales ratio, which is back to where we were in the year 2000, the dot-com bubble. We have to look at the price to cash flow, which is higher than we were back during the dot-com bubble, and also the price to book value, which is way higher than we were in the year 2000 during the dot-com bubble. But I’ll put that all in perspective for you. In this week’s newsletter, and I’ll have earnings updates and target price updates for the S&P 500. Suffice it to say, earnings started going up in the market in 2009. And earnings for the S&P 500 have been going up every year, except for the COVID year, since then. And during that period of time, we’ve gone from $60 a share in 2009… and a S&P 500 of 660 to an S&P 500 today of 6,800 and earnings of almost $300 per share. We’ve gone from $60 per share in earnings per share S&P 500 to almost $300. And we’re expecting another new record next year in earnings, in an earnings haul. That’s based on what we know now about the market. Now, like I said, we don’t have an earnings problem. It’s how much you’re paying for those earnings right now. And that’s the worrisome part is the ratios. I had somebody ask me yesterday, one of my subscribers, Bill, do you think that the market will go above 23 times forward earnings? Yeah, it could absolutely do that. I mean, the five-year average is 20. I want to say in 2000 we got as high as 40. on the S&P 500. But, you know, I mean, every time it gets up in this 23 area, your risk level is rising. And for me, it makes no sense to own 2% or 3% growers in a market that’s trading at 23 times forward earnings. You want to own superior growers that still make sense. I mean, to me, that’s the best way to handle this market at the current time. I’m going to give you an example here today. One last example. But to get the newsletter, you know, at the beginning of the year, I overwhelmed my staff when I said, Edie, we’re going to offer our listeners a month, four weeks of the client newsletter that has all the portfolios in it, exactly what we own. And in addition to that, we’re going to give them access to the app. so they can have an analyst in a pocket, in their pocket, and look up these numbers that I’m quoting here on the air. And I said, in addition to that, we’re going to give them the live alerts when we make a change in our portfolio for four weeks. He said, well, you can’t do that. The phones, I’ll be overwhelmed. I said, tough. That’s a good thing, Edie. Remember Edie? Edie’s here actually watching the show today. We were overwhelmed. I never saw so many e-mails. coming in for people taking advantage of that offer and I’m glad I did it because I think we educated a lot of people about the market I think a lot of people had their eyes opened on you know kind of how Wall Street pulls the wool over your eyes and and sells these these dinosaurs somebody’s got to feed the dinosaurs I guess the Johnson and Johnson’s and the Procter and Gamble’s and the AT&T’s and the Verizon’s of the world somebody’s got to buy and sell those things or They just kind of go away, I guess. I don’t know. But we educated the public. We’ve had a record number of subscribers this year. We have record numbers of people listening to the podcast. We have record numbers of people coming to our workshops this year. We did several. The San Francisco workshop, we had standing room only. And so I think it was a good thing to do, and we’re going to continue it into 2025. And we also plan on hitting the Grateful Dead bus, and the groupies are out there. When are you coming? We’re going to hope for eight or nine trips this year. across the country. I haven’t put them in order yet, but it looks like Houston’s going to be number one. And I’m going to drive the bus, the bus and everything. Or I’ll be looking at charts while Jennifer drives the bus, maybe. But we’re going to have fun and visit. And I would also like to do a monthly webinar from my office in Charleston, broadcast out nationwide. I’d like to do that also. So Let’s take a look at one more stock here. Oh, to get the newsletter, it’s pretty easy. Just go to the website, GundersonCapital.com. Get on track. I mean, get ready for 2026. No two years are ever alike in the market. Get four free weeks. We still offer the same offering. Edie’s shaking her head no, don’t do it again. No, I think we can do it again, Edie. We can handle it. 855-611-BEST, or go to our website at gunnersoncapital.com. Okay, Broadcom is down 10% today. Broadcom is probably the second best semiconductor in the world, company in the world, maybe third, depending on where you want to put AMD. Broadcom has delivered 43% per year to investors over the last 10 years. Over the last five years, it’s 62%. Over the last three years, it’s 99%. And over the last 12 months, the stock’s up 139%. It’s down 10% today. And when I look at the next five years, the valuation on the stock, I see a stock that should double again over the next five years. That’s just me, okay? There’s risk to that, obviously, that they don’t execute. But just based on the numbers, I think the pullback in Broadcom and in AVGO is a buying opportunity just based on my app. That’s not a recommendation. Those are just the consensus numbers that are out there on the street. And lastly, I would say, if you’re with a broker or a money manager that’s got you in a traditional 80-20 or 60-40 or 70-30 or dinosaur stocks, why don’t you give us a call and set up an appointment with one of our advisors, 855-611-BEST, 855-611-BEST. Edie is the keeper of the appointment book, and she will make one of our advisors available to talk to you about your portfolio and get a second opinion. 855-611-BEST or GundersenCapital.com. Have a great day, everybody.
SPEAKER 03 :
This show is not a solicitation to buy or sell any securities. Bill Gunderson or clients of Gunderson Capital Management may have long or short positions in stocks mentioned during the show. Past performance is not indicative of future performance. Gunderson Capital Management is a fee-based registered investment advisory firm. All accounts are held at Charles Schwab. Schwab is a member of SIBC and FINRA.
In this engaging episode, Bill Gundersen explores the critical lessons investors can learn from the fluctuating stock market. He discusses the surge in market indexes and the persistent issues in the bond market, shedding light on why identifying growth stocks like Eli Lilly can significantly outperform traditional dinosaur stocks. With a focus on evaluating stock valuations and making informed investment decisions, Bill provides actionable advice for navigating a potentially overvalued market as we approach 2026.
