Investing With IBD Ep. 358 Prepare Your Portfolio For The Future By Finding Past Market Analogies
9 snips
Feb 4, 2026 Matt Caruso, founder of Caruso Insights and former professor/market maker, offers market analysis with a trend-following lens. He compares today’s consolidation to 1990s internet cycles. He explains why late buyers create choppy action, how AI fuels sector rotation, and highlights tools like relative strength and moving averages to navigate sideways markets.
AI Snips
Chapters
Books
Transcript
Episode notes
Market Of Stocks And AI-Driven Rotation
- The current market is a 'market of stocks' with violent rotations rather than a synchronized index move.
- AI-driven productivity is creating structural winners but also heightened short-term uncertainty.
Use Relative Strength To Time Strategy
- Check XLP vs. Qs relative strength and its 50-day/10-week average to judge if your strategy is in-season.
- If staples are outperforming, avoid forcing strategy changes and consider sitting on cash until leadership returns.
Protect Capital In Sideways Markets
- In choppy, sideways markets, reduce leverage, avoid margin and tighten position sizing to prevent large drawdowns.
- Build guardrails (position size, turnover rules) so chop can't wipe out your account.
