https://youtu.be/pn5620t4Yuk The S&P 500 just closed the week at an all time high. Tech had almost nothing to do with it. The semiconductors took a hit all week long. The money carrying the index went into sectors nobody has wanted to touch since the summer. That’s a sharp break from the last few weeks. The Nasdaq led the S&P 500 back to record highs with a straight shot higher of about 10%. This week the Nasdaq finished basically unchanged. The semis did worse. Meanwhile the market bought everything that was oversold. Financials, consumer staples, and utilities all ripped off their lows. The SPX still came within 8 points of the upper edge of its expected move. That’s 8 points on a $7,800 product. I don’t think one week of weakness means the great Nasdaq fade is underway. Next week will decide it. Here’s what I broke down in tonight’s video:

My multimillion-dollar house in the islands had no hurricane insurance. People think that’s absolutely crazy. I had liability insurance, in case somebody fell off the roof, and it could have been me, because I’m the idiot up there fixing the Starlink every other day. What I didn’t have was hurricane coverage. The quote was $75,000 a year with a $20,000 deductible, the amount you pay yourself before the insurance kicks in. So basically I had to be $100,000 a year in. I didn’t pay $100,000 to protect myself from a stupid hurricane. The Hurricane Window Where You Don’t Want To Be The Donkey Hurricane season runs from June through November. Down on the island, there’s a three-week window in September where you’re basically playing pin the tail on the donkey, and you don’t want to be the donkey. Locals told me storms have hit as late as November. So I

Goldman Sachs reports Tuesday, and I’m not buying it first. Goldman’s not going to have bad earnings this quarter. But the forward-looking statement, what they say about the months ahead, might not be very nice. When the bond market moves this much, somebody’s holding paper losses, a drop in value they haven’t locked in by selling. When bonds sell off like this, the balance sheets of these banks look absolutely horrifying. At the end of June, U.S. banks were sitting on $326.7 billion in unrealized losses on their bonds and other securities, according to the FDIC. Rates have gone higher since then. The 2.25% Bonds Your Bank Is Stuck Holding For 30 Years Bond prices fall when interest rates rise. Some of these banks are getting paid two and a quarter percent on a 30-year bond, while the 30-year Treasury pays around 5.6% today. Two and a quarter percent doesn’t

This year, owning the S&P beat picking stocks. The SPDR S&P 500 ETF (SPY) is up about 14%, while Amazon is up about 11% and Google about 9%. Even the managers who owned Micron, which is up 236%, didn’t own enough of it to make a dent.  It’s a brave new world of one-stock wonders. And that’s opened up one of the most extreme splits I’ve ever seen in a pair of funds that usually move as one. The Invesco S&P 500 Equal Weight ETF (RSP) holds the same 500 stocks as SPY. The difference is that every stock gets the same weight, so the 500th-biggest company counts as much as Nvidia. Correlation measures how closely 2 things move together, and 100% means perfect lockstep. Over 10 days, RSP and SPY usually run somewhere around 92% to 100%. Right now, there are huge breaks in that correlation, and SPY is