In this episode of the Best Stocks Now show, money manager Bill Gunderson provides a comprehensive market update as the new year kicks off. From a remarkable surge in stock indices to geopolitical tensions impacting oil prices, this January 6th edition dives into the complexities of market trends and what they mean for investors. With insightful dialogues on the current economic landscape, Bill and his co-host Barry Kite dissect global events and their potential implications on investments.
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 Tuesday. It is the January 6th edition of the Best Stocks Now show with professional money manager Bill Gunderson, president of Gunderson Capital Management, a nationwide fee-based advisory firm. And I’m here with Barry Kite, our chartered financial analyst and certified financial planner. And we’ve got an update going on so far. We have a good start to 2006 in these early days of the new year. We have the Dow up, hitting a new all-time high. It’s up 143 points, and we’re now above 49,000, another milestone, as we head for 15K maybe. We’re at 49,120 on the Dow right now, and the S&P is up 25 points. 6,927. That is another new all-time high. The NASDAQ is not quite back to its all-time high, but it’s up 116 right now on some news coming out of the CES conference in Vegas. And the NASDAQ sits at 23,515. The small caps are down, however. They are the one index that is down right now. We’ve got gold hitting not a new all-time high, but it’s having a good day. It’s up a half a percent. Gold is, oh, now it’s up 1%. Wow. And silver’s up 3.9%. Wow, what a move in silver. And last but not least, Bitcoin is up $371 today. So welcome to today’s Best Stocks Now show with professional money manager Bill Gunderson, president of Gunderson Capital Management. and i’m here with barry kite and we’re here uh every weekday you have current events politics the economy all coming together to help us point to where the best investment opportunities are now in the market at any given time and of course that does change uh goes through cycles from week to week or month to month or year to year. Sometimes day to day. Day to day as the interest rate picture changes, as invasions of Venezuela. I wouldn’t call it an invasion, but a capturing of the Presidente. Incursion. Yes, in Presidente. And eyeballs on Greenland and CES in Las Vegas, all of these things converging. which makes for a very interesting, whether you’re in the market or not, you know, every night I’m able to tell my wife at the dinner table, I say, you know, I can tell by just looking at all these charts today that he’s got his eyes on Greenland. And, you know, the proxy for that is Critical Methyl, CRML. It’s been rallying here recently. I think Greenland has maybe invited us in, but I don’t know. We’ll just have to see where that goes. The oil stocks were in play big time yesterday with the potential to rebuild the infrastructure of the country in the world. with the most, the biggest proven oil reserves. See, you don’t have to be an investor in the market to appreciate that fact. At the next party you go to, you can say, hey, guess which country in the world has the largest proven oil reserves? Venezuela. And, you know, I guess the tragedy of it is that they’ve just let them go to pot. And, of course, right along with that, the economy goes to pot. The people don’t benefit. You go from one of the richest countries in the world to one of the poorest countries in the world. And in addition to that, they’ve lost much of their freedoms down there because you’ve got a few people that are in charge. that have prevented freedom from prevailing down there.
SPEAKER 07 :
And essentially a country that’s ruled by the gun. Yeah, it’s a tragic situation. It really is.
SPEAKER 06 :
And, you know, let’s not forget that China doesn’t have oil. They have very little. They rely on other countries for their oil. That would be a strategic place for China to get their oil from. They get their oil from Russia and other despots around the world, but Venezuela is a lot closer to us than it is to China, so it’s strategically located. So there’s a lot of things that come into play here. uh… the the freedom of the people the wasting of a major natural asset that they have under the ground that could enrich the people make venezuela much more proper prosperous country uh… all that coming into play and yesterday i saw a lot of the big oil majors like chevron uh… and exxon actually breaking out uh… to new fifty two week highs will it follow through or not the biggest fight that oil has this year As far as investing in it goes is the price of oil, $57 a barrel. I mean, the stocks very much track the value, the price of the product that they produce, and they’re just barely above break-even right now, a lot of the oil producers. The other ones that I saw benefiting wildly yesterday, Halliburton and Schlumberger. Where’s Dick Cheney when we need him, the late Dick Cheney? who always did a lot of favors for Halliburton along the way. Those stocks were in play. And the rare earth stocks were really in play yesterday. And whether you’re in the market or not, I mean, the politics behind rare earth, where China controls 80% of the rare earth in the world, And where we gave up all of our refining capacity of these rare earths because they polluted the air. And now we’ve got to bring all of that capacity back online and find our own rare earth. So China can’t hold that over our head. And that relates right down to Las Vegas, Barry, just south of Las Vegas. MP Materials was up big yesterday. That seems to be one of the most promising reserves of rare earths. And the Big Mound in Texas, where you have USA rare earth also looking into that. That’s also one of the biggest storage and under the ground, hopefully, wealth of rare earth minerals. And, of course, we need it. We need it to power a lot of different things that Rare Earth are needed for, especially in a high-tech world that we live in today. So it was real interesting going through the charts yesterday, beginning of New Year, Barry, and no two years are alike.
SPEAKER 07 :
Well, it’s like the commodity story really continues, right? I mean, whether it’s silver, obviously, as we finished the year last year. Silver, you mentioned, is up big today. Gold, obviously, was really the biggest benefactor yesterday of the capture of Maduro. And when you look at now, I mean, talk about oil, I’ve been thinking the headwinds for oil prices have to be pretty heavy. I mean, whether it’s You know, at some point, additional, you know, who knows how soon it will be, but at some point you’ll have additional crude coming on board from potentially from Venezuela. You’ve got, you know, if you get some kind of peace deal with Ukraine and Russia, right, you could have some, you know, actual legal Russian crude, right, come online. And so… all of that being kind of a headwind for oil prices in general.
SPEAKER 06 :
Yeah, it’s all about supply and demand, and right now there’s just too much supply on the markets. But I would like to see the people of Venezuela benefit from the natural resource that they have been blessed with, the largest oil reserves in the world. I also saw good action yesterday in a lot of the drone stocks. I guess we used a lot of drones in that invasion attack.
SPEAKER 07 :
Stealth drones, I heard.
SPEAKER 06 :
Yes, and there’s several publicly traded drone stocks. And I also saw the small nuke stocks like Oklo and SMR, which are the small modular reactors, doing well yesterday. And the rare earths, you know, as I mentioned, the antimony stocks, the Carmel, CRML, which has exposure to Greenland, and USAR, which has the rare earth under the ground in the Copper Mound of Texas. I also saw the big financials like Citigroup and Goldman Sachs breaking out yesterday. So it’s a pretty healthy market right now to begin a new year. The interesting, here’s your numerology for the day. Silver was up $7.77 yesterday, $7.77. And I thought about those slot machines in Las Vegas when those three sevens come up and all that silver comes pouring out of that machine. That was the old days. Now it’s all digital. You don’t even have coins now.
SPEAKER 07 :
You just get a paper ticket, no sound.
SPEAKER 06 :
You used to love to put that bucket underneath that jackpot and collect all those silver dollars as they fell into your bucket, but it’s not quite like that. And then, of course, Bitcoin had a good day yesterday, too. It’s reclaimed $90,000, and it’s up around $94,000 once again. The forward P.E. of the S&P 500 begins the day at 22.37. 22.37, that’s rich. The five-year average is 20. The high has been 23 recently. When we come back, we’re going to go back to Las Vegas. I happen to see a little bit of Jensen Wang’s presentation, what’s going on at CES, one of the biggest electronic shows in the world every year. This is the Best Docs Now show. We’ll be right back. And welcome back here to the second quarter of today’s Best Docs Now show where economics, political, politics, current events all collide. And, you know, it’s an interesting world we live in today. There’s almost something happening big. on a daily basis that ripples through the economy, it ripples through the stock market, it ripples through the bond market, it ripples through the crypto markets, and it even ripples right through your IRA account, your wallet. I mean, it’s just crazy all the different cross-currents that we watch on a daily basis.
SPEAKER 07 :
Some kind of butterfly effect, right?
SPEAKER 06 :
Yes.
SPEAKER 07 :
That’s really what it is. Cross-currents is probably the best way to put it, and it seems like those currents have gotten… Stronger and stronger and stronger over the years as information is faster.
SPEAKER 06 :
Much more faster, much more rapid. Trump estimates the project to revive Venezuela’s oil infrastructure could take under 18 months. That’s pretty surprising. Actually, I was thinking like three to five years. You know, a lot of the infrastructure, it’s there, but they’ve had to go off and leave. They’ve had to flee. I mean, Chevron made some big investments, and they had to leave town because of all of the instability over there. And a lot of that stuff has just become dilapidated, and it needs to be brought back up to where it was originally.
SPEAKER 07 :
Well, I think they’re under sanctions, too, where they couldn’t, you know, couldn’t get the equipment. Right. Some of those, you know, to to even refurb it. So that basically had to think of a think of a bunch of, you know, oil platforms and in areas with, you know, wells that haven’t been serviced in a.
SPEAKER 06 :
you know extended period of time and you know those things over you know over time it’s a dangerous business they become a ticking time bomb i mean yeah and you got pete headsack flying over you know looking through his binoculars or his satellite radar at any kind of boat action off the caribbean kind of dangerous to go out to an oil rig and check on that oil rig you know wave the white flag let them know you’re from chevron and you’re not running drugs but anyways there will be a lot of money spent is what Trump said okay now in that here’s what I hear this is how I analyze this Chevron and mobile and whoever else is in on it is going to have to spend a lot of money but Trump also says that will subsidize some of that money and and and they’ll do very very well but From my perspective, I see more of a benefit to the companies that will be the beneficiary of that money spent. And to me, that’s going to be the Halliburtons and the Schlumbergers. Oh, and there’s a whole bunch. There’s a whole slew. And how am I going to know which ones are benefiting already and are lined up to receive some of this money flowing into it? By looking at the charts daily. I already caught a couple yesterday. I go, okay. There’s one starting to break out, and I looked at it. We already know Liberty Energy, maybe. You’ve got the ex-CEO as the energy secretary that used to run Liberty Energy. But we’ll be watching for movement in certain oil stocks. Yesterday, no question about it, Halliburton and Schlumberger were big breakout stocks. along with Chevron and ExxonMobil. But my issue is, like you said, my issue with Exxon and Chevron is the current price of oil. And somebody did send me an email yesterday, Bill, are you going to play this oil play right now? And well, you know, we’ll watch oil prices, number one. And number two, we’re going to watch the charts of the companies that all of a sudden start to break out. We’ll be on the receiving end of the billions, hundreds of millions, billions that will be spent over the next 18 months to bring the oil back up online again.
SPEAKER 07 :
Well, when you mentioned it, Schlumberger and Halliburton are kind of the low-hanging fruit, I think, in terms of beneficiaries, because obviously they’re not quite as dependent on what necessarily the price of oil is. They’re going to go in and refurbish those oil fields, of course, you know, Chevron, those names, right, are going to be more tied, certainly more tied to the price of oil, which, like we just mentioned, I think the price of oil has a lot of headwinds. I mean, even the drill baby drill here, right, adds supply to the mix as well.
SPEAKER 06 :
That’s right. Okay, now we’re going to switch gears completely. We’re going to move to data centers. And then we’re going to go to Las Vegas and check in on CES and what happened there yesterday. There’s big news on the nuclear front today, and it’s a stock that we own and we’ve done very well with here. We continue to be big believers in the nuclear renaissance. There’s a company in Irving, Texas called Vistra. vst which is a 58 billion dollar utility now normally when you think of utilities you think of the company you write your check to every month uh you know to keep your lights on and your electricity on and but there’s a lot of hybrid utilities like vistra that are engaged in the retail and wholesale sales of electricity power generation fuel production etc and a lot of them have nuclear exposure. That’s the key. And Vistra is one of those chosen ones along with Constellation Energy and Talon Energy and a few others that have nuclear exposure. And we do own Vistra. Vistra is up 4.5% today. It’s one of the biggest movers in the market. And there is news on Vistra. They’re definitely getting big time into the powering of the data centers they’re acquiring cogentrics energy from quantum capital in a deal valued at four billion dollars so not only is bill are billions going to be spent on the oil fields of venezuela billions are going to continue to be spent in building out our electricity our power grid in america to keep up with the demand coming from these data centers Cogentric consists of 10 modern natural gas generation facilities. So that’s the beauty of Vistra. They don’t have to be electric. They can be hydroelectric. They can be natural gas, whatever it takes. And then, of course, you’ve got GEV, GE Vernova, which makes the turbines that spin and help power plants. send the power to these data centers. With the addition of Codentric’s natural gas portfolio, Vistra, VST, has completed and acquired or developed projects in each of the competitive power regions worldwide. where they operate. Okay, so that’s a big deal there for Vistra, a major player in powering data centers. Okay, there was a lot of activity on the nuclear front yesterday with the rare earth stocks, the uranium stocks. and especially the companies that are linked to nuclear power. Centris Energy, LEU, wins a $900 million award from the U.S. Department of Energy to restart domestic nuclear fuel production. Okay, now… You’ve got to say on the politics side of the coin, there’s been a major shift from the previous regime, which was chasing wind farms off of New York and Massachusetts and elsewhere and solar projects here and there. No, there’s been a massive shift because of the data centers that need much more power, and we have totally shifted to nuclear, which the Biden administration did go along with in about the last year of his presidency. Nuclear and natural gas are back in vogue. 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. Thank you. And welcome back here to the second half of today’s Best Stocks Now show. Okay, we’re going to go to Las Vegas here. What’s happening at the Consumer Electric show? I did catch a little bit of Jensen Wang’s. He’s no Steve Jobs, but he does a pretty good job. He’s definitely a better showman than Tim Cook is at Apple. AI is everywhere. That’s one of the takeaways, ranging from NVIDIA’s Alpamayo, the world’s first thinking model for autonomous driving, to Caterpillar’s evolution from dirt to data. Whoever thought? And by the way, Caterpillar has been a really good performing stock here over the last several years. Autonomous machines, industrial AI. It’s even down to the fishing industry. Now, I have not seen this. I’m waiting for AI to tell me where to go this Saturday, you know, offshore to the most productive reef. for Red Snapper off of Charleston, South Carolina.
SPEAKER 07 :
And save you the most gas also.
SPEAKER 06 :
Yeah, save me the most gas. Brunswick highlights AI-powered innovation in boating and fishing at CES. And I hope it will drive the boat. Well, actually, I do have autopilot while I look at stock charts.
SPEAKER 07 :
They’ve gotten mad pretty good over the years.
SPEAKER 06 :
Yeah, so anyways. And then Jensen Wang, he was unveiling this massive… Oh, God, what was the name of it? Ruben, Ruben, Ruben. And all of the new pieces and new technology in there, it was really crazy. There’s a lot of robots and humanoids walking around the floor there of CES. You’ve got LG’s Cloyd, which can fold laundry and unload dishwashers. Well, my wife just get rid of me then if she can find somebody to do that. Why does she need me?
SPEAKER 07 :
That’s one of my strong skill sets right there. You know what I mean?
SPEAKER 06 :
You’ve got the Atlas Humanoid by Boston Dynamics, which can lift up to 110 pounds and will be deployed at parent Hyundai car factories. Other interesting developments included Lego Smart Bricks, which will contain chips and react to movement and sound. Wait until these Lego guys start walking around your room at night while you’re sleeping. Oh, no. Man, and surprising gadgets like the Allergen Alert Mini Lab that can quickly test food for gluten and allergen. See, when they deliver that plate to you at your favorite restaurant, you stick the needle in there, hook it up to your iPhone, and it’ll tell you how much gluten.
SPEAKER 07 :
is in the thing or not you can send it back I said I told you gluten free darn it I guess you don’t need a food taster anymore right I mean in case for your make sure it’s not poisoned right so you just stick your iPhone in there and now we’re good to go
SPEAKER 06 :
Now, at Hall’s Chop House, they make you cut into your steak when it’s delivered to make sure it’s just to your liking. Yep. It’s got the right amount of thickness. You know, it just ruins the steak. What if it’s not to your liking? You’ve got this big cut in it. Isn’t there some kind of little probe or something that we can stick in there to make sure it’s right? But anyways, I’m sure that’ll be coming along. I’m sure there’s probes now that do that. And then you’ve got, I see the U.S. is looking to Raytheon for new radar in the 12.5 billion air traffic control. They’re completely overhauling the air traffic control system. which are using way – that’s kind of scary. How did we let that happen? We’re using this outdated technology with all these planes landing in Atlanta and in Dallas and in Phoenix, right? I think I want the latest radar and the latest technology guiding all of this out there. AMD is getting high marks with their announcements at – CES. Let’s just check in on a couple here. And then there was a couple of smaller ones when he rolled out Rubin and talked about the companies that were involved in it. Nebius was one, and we’ve owned Nebius in the past. NBIS. Let’s check in on Nebius today. I always look at the chart the next day to see if it really was a big thing that was announced. Nebius, oh, that’s a really good chart on Nebius. It’s up 6.1%. Nebius is a Netherlands company which provides infrastructure and services to the AI builders globally. It’s a $24 billion company, is Nebius. Another one that Jensen Wang mentioned, let’s see, Nebius. SMCI, which is Supermicro, they’re going to provide support for NVIDIA’s Vera Rubin NVL72 computing platform. And another one that came up quite a bit was CoreWeave. And I’ve heard a lot of differing opinions on CoreWeave. CoreWeave is one that we got lucky. We bought it soon after it went public in 2025. It rocketed from 33 to 187. I said, you know what? When you get a gift like that, cash in. Let it settle and wait for the dust to settle. And it settled. I mean, it never really has recovered from that big run-up. It sits in the $76 area. You know, I think CoreWeave tends to be a little bit more commoditized. They have huge sales growth, but their earnings growth is not there. I mean, they’re still losing a lot of money.
SPEAKER 07 :
And they’ve got leverage.
SPEAKER 06 :
They have a lot of leverage, too. They’ve been one of the ones floating the debt, right, on the private markets.
SPEAKER 07 :
Yeah, some of that convertible debt, I believe.
SPEAKER 06 :
Yeah, that’s scary stuff there. So anyways, those were some of the companies mentioned. And, of course, Google also is getting a lot of play with their chips that they developed for AI. Google has a lot of things going on for them right now. Whether it’s the robo-taxis with Waymo, whether it’s the chips, or their Gemini AI, which is said to be the best one out there, way ahead of OpenAI. And, of course, OpenAI is there at CES making waves. But they seem to have fallen behind a bit, behind Gemini. And then on Monday, NVIDIA CEO, he noted that Vera Rubin, the next generation computer platform, that’s what’s going to be the successor to Grace Blackwell. He names these after women or makes up names.
SPEAKER 07 :
They’re hilarious. I don’t know his name. What’s the next one? We went from Blackwell to Blackwell?
SPEAKER 06 :
Vera Rubin from Grace Blackwell to Vera Rubin. Maybe Marilyn Monroe will be next. I don’t know, but she would attract a few. Maybe they’re going to create an AI version of Marilyn Monroe and have her come out on the stage, right? But I’m waiting for the fishing, the advances made in fishing with AI. See the RoboTaxi revealed at CES from Lucid, Nero, and Uber. I’ve got a picture of that, and we’ll put that in the newsletter this week. I think the jury’s still out on RoboTaxi as to whether or not there’s a lot of money in it. I mean, just producing the hardware, the cars… I don’t know where there’s a lot of money in that. And, you know, Uber was going to produce their own cars. They sold that off because they said, you know, you’re basically producing a limited amount of cars. I mean, you’ve got a lot of fixed expense.
SPEAKER 07 :
I mean, there’s an execution risk. You’ve got, I mean, supply chain issues. I mean, versus Uber could just, I mean, essentially… be more of a technology company, right?
SPEAKER 06 :
And there’s a lot of competitors. I mean, Tesla with their robotaxis. You’ve got Lucid now in on it. You’ve got Waymo in on it. Amazon has their own version of robotaxis. Well, maybe, I mean, if you envision a world where it’s all driverless cars taking us to and fro to work, from home to the supermarket while we’re sitting back enjoying TV or looking at stock charts, whatever your poison is, we could be facing quite a future. Maybe it will be an all-RoboTaxi world at some point in time, and all the trucks on the highway will not have drivers in them. Who knows? That could be where we’re headed at some point in time. And, of course, let’s not forget delivery. Domino’s Pizza comes in some kind of a driverless car, and the robot comes out and delivers it to your door, and Amazon pulls up in a driverless truck, and the robot unloads it. I think that’s the kind of world that a lot of these tech gurus in the – I can’t wait to get back to the Silicon Valley this year. Again, Barry, because there’s probably a lot that’s happened since we were there several months ago. New advancements taking place. Fundstrats Tom Lee predicts that Bitcoin could hit a new record in January. This guy makes the craziest predictions I’ve ever seen. He’s the one that said the S&P would hit 7,800 by January the 1st. Well, this is January the 6th. He was only off by 1,000 points. Now he’s saying that the all-time high in Bitcoin was 125,000. It’s at 95 now. He says it could hit a new record by the end of January. I don’t listen to much of what he has to say. I think he’s a promoter. We’ll be right back.
SPEAKER 03 :
And welcome back here to the final segment of today’s Best Stocks Now show. And the macro picture of the market. Okay.
SPEAKER 06 :
You could be the best stock picker in the world or the best ETF or mutual fund or whatever, but you’ve got to have the market on your side. And that macro picture is very, very important. And, you know, you can make it complicated or you can keep it simple. I’ve always been a guy that tries to keep things simple. And you’ll notice over time that the market follows the earnings of the S&P 500. You go back to 2006. When the earnings were like $50 a share for the S&P 500, they started to recede, took the market down, finally bottomed those earnings did in 2008, started to pick up in 2009, and earnings have been going up for the S&P 500 ever since. And this year we’re looking for record numbers in earnings for the S&P 500. And, of course, the numbers for 2027 are already out, the estimates, which the market is basically looking to right now and using that as its target to trade on. We’re expecting this year in 2026, which we just began, 13% growth in earnings. 13% growth in earnings versus last year, which was also record earnings. That’s the kind of fuel, rocket fuel, that this market has right now. It’s a combination of nuclear. It’s a combination of data center. It’s a combination of high-speed chips. It’s a combination of even big financials. It’s a combination of all kinds of things. And when you add it all together, you’re going to have record earnings in the S&P 500 once again this year. So with that part of the equation pretty much kind of set in stone, at least for now, and it does vary from week to week. I keep my eye on the trend of those earnings every week because the market not only follows earnings, but it follows earnings expectations. When earnings expectations are revised higher, the market responds immediately. whether it’s an individual stock or whether it’s the overall market. And I saw here an article, Morgan Stanley’s analyst, Mike Wilson, who’s been pretty negative over the last many years and has been pretty much wrong. I guess he’s somehow seen the light, and now he’s upped his target price big time for the S&P this year. And now he’s back. He’s kind of where the consensus is right now. But he thinks that in 2026, we’ll see an expansion in the multiple of the market. That’s the P.E. ratio. And that’s something that I look at every single day. If you own a business, I don’t care if you own a donut shop, a dry cleaner, a CPA business, a registered investment advisory firm, or whatever the case may be, When you go to do a valuation on your business, the valuator is going to put a multiple on your earnings or your book value or your sales and come up with what he thinks your company is worth. And then, of course, if you have suitors to buy your company, they’re going to do the same thing. They’re going to look at your track record of earnings, your track record of sales, see what direction they’re going in. That helps either enhance your multiple or penalizes your multiple. If you don’t have any growth, you’re going to get a lower multiple than a company that is growing at a very good clip. You know, filet mignon costs more than ground chuck. That’s the way it is, and it’s the same way in the stock market business. But the multiple on the whole entire market… you know twenty i’m just going to use twenty eighteen to twenty has pretty much been the average uh… over the last of ten years somewhere in there recently we’ve seen the multiple on the s and p five hundred expand beyond those ranges of twenty which has been the ceiling uh… all the way to twenty three we’ve seen it stretch the multiple has stretched and it’s because the growth rate of the S&P 500 earnings has stretched. You’re looking at 13 double-digit earnings growth this year. When most other markets around the world are seeing low single-digits earnings growth, we’re seeing low double-digit earnings growth, which is incredible. And that’s one of the main reasons why you’ve seen the multiple of the S&P 500 and the Dow and the NASDAQ. The NASDAQ’s up around the low 30s right now. expand addition to that giving some helium lift to that multiple is a fed that is going in the right direction for the market going lower with interest rates which helps that multiple expand the last time we saw big contraction of the multiple on the market which is what you multiply the earnings by, was in 2022 when the Fed went on the rampage, on the warpath, and started raising interest rates at a draconian rate. And you saw the multiple contract clear down to 17 from the low 20s, and, of course, the market contracted in 2022. So that’s another reason why we watch not only the politics of it all, who’s going to be the next Fed chair, To the sentiment of the Fed, we’ve had kind of a grouchy guy in there, a stingy guy, Jerome Powell, who’s been historically behind the curve on not only the rate hikes but now on the rate cuts. And the market is looking to that. And right now the market’s saying the right multiple is right around 22. And that’s where we’re at, and that’s what we’re taking our cue from, 22 times this year’s earnings estimates. And the consensus estimate is about 76 to 7,800, and that’s what Mike Wilson is coming within as his multiple. Well, we’re all out of time here. It’s a fast-moving hour. There will be lots of developments today in Venezuela. There will be developments at CES. There will be news coming out of the Fed. Atlanta is lowering their GDP estimates actually for quarter four. And then if that’s not enough, next week earnings season begins, and we’ll see if there will be adjustments made upwards or downwards to those earnings estimates that the market is taking its cue from right now. And we’ll get a payrolls Friday, too. Oh, boy. I hope I get a payroll on Friday. I’ll be looking for my paycheck in the mail. She always says it’s in the mail. Okay. Anyways, to get four-week trial, I put out a newsletter every Friday that encapsulates everything we talk about during the week. Along with our top picks in the market for 2026, go to GundersenCapital.com, GundersenCapital.com, to stay on top of all of this throughout 2026. I’m also a professional money manager. My firm manages money professionally. We run five portfolios here at Gundersen Capital Management that we mix and match, depending on your situation. your risk tolerance, your age, etc. To get more information on that or set up an appointment with us, 855-611-BEST. 855-611-BEST. Have a great day, everybody.
SPEAKER 01 :
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 SIPC and FINRA.
