Happy Friday! 

This was a historic week. Democrats, in a so-called “blue wave,” managed to take control of both the Senate and House of Representatives. In response, a wave of tech sell-offs battered Wall Street.

The results of the midterm elections also have the potential to reshape the AI energy trade.

We’re covering those topics in today’s Weekly Digest… and in case you missed them, here is a quick recap of what we published over the past few days: 👇

➡️Investors are worried about the prospect of rising interest rates because this push yields higher. That said, a steepening yield curve doesn’t mean investors should panic.

➡️The results of the recently-concluded elections have the potential to reshape the AI energy trade. Here’s what financial advisors and investors need to look out for.

➡️Companies with strong name recall will always have a place in a portfolio. However, those aren’t the only firms worth putting money into. 

➡️Fear is often the single biggest obstacle to long-term investing success. When market uncertainty hits, investors are hit with sensational headlines meant to induce panic. Here’s how financial advisors can help them fight that fear of losing.

From Professor Joel Litman’s YouTube Channel:

• Is the S&P 500 really overvalued? And just how healthy is corporate credit today? In one of his latest videos this week, Professor Joel Litman breaks down why the broader market isn’t as overvalued as some might think and what corporate credit conditions reveal about the market’s health. Watch the video here.

Here are other pieces of news and information you might find useful: 

• The Dow Jones Industrial Average, the S&P 500, and the Nasdaq fell by 3.4%, 4.4%, and 5.5% yesterday following the electoral wins of candidates who ran on a platform of restricting data center construction.
• Research from Vanguard and PensionBee revealed that auto portability greatly reduces cash-outs. 

That’s all for today’s Weekly Digest. See you next week!

Best regards,

Joel Litman & Rob Spivey
Chief Investment Officer &
Director of Research
at Valens Research

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