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Let’s dive into this week’s analysis!
A quick breakdown — in case you don’t have the time.
⭐ This has been one of the strongest rallies in market history.
⭐ Understanding appreciating vs depreciating assets.
⭐ Three S&P 500 sectors just hit dot-com and financial crisis extremes.
⭐ This isn’t another meme stock mania.
⭐ Anthropic filed its draft S-1 to go public.
Market Overview
As of Market Open 6/4/26
ETF Winners & Losers
Chart of the Week
We just witnessed one of the strongest rallies in stock market history.
Before finally pausing this week, the S&P 500 had risen for nine consecutive trading days and nine consecutive weeks — a streak rarely seen in modern markets.
From the March 27th low through May 29th, the index surged 19% in just nine weeks, making it the 16th-largest nine-week rally since 1950. To put that into perspective, only fifteen other rallies over the last 75 years have been stronger.
What's even more interesting is what typically happens next. Historically, the largest nine-week rallies have been followed by strong forward returns, with the S&P 500 gaining an average of 24% over the following year and 71% over the following five years.
Of course, history doesn't guarantee future results. Many of these historic rallies occurred after major bear markets, recessions, or economic shocks when sentiment was deeply depressed. But they do suggest that powerful momentum tends to occur for a reason — usually because investors are rapidly repricing a better-than-expected economic and earnings outlook.
Short-term pullbacks are normal, and after a rally of this magnitude, they should probably be expected. But history suggests that some of the market's strongest advances often begin with exactly this type of relentless momentum.
In Case You Missed It…
In this week’s Monday-morning episode of the Rich Habits Podcast (linked here) — Austin and Robert break down one of the most important wealth-building concepts every investor needs to understand: appreciating vs. depreciating assets.
Here’s what they covered…
Appreciating Assets Build Wealth Over Time — Appreciating assets are things expected to increase in value over time, like stocks, index funds, real estate, businesses, and certain private investments. The best ones can also produce income along the way, allowing investors to benefit from both growth and cash flow.
Depreciating Assets Lose Value Over Time — Depreciating assets are things that typically lose value from the moment you buy them — cars, boats, phones, furniture, appliances, and most consumer goods. They can still serve a purpose, but they should be treated like tools or lifestyle expenses, not investments.
Where People Get Confused — Some assets fall into gray areas. A primary home can appreciate, but taxes, insurance, maintenance, and mortgage interest can reduce the real return. Collectibles, crypto, gold, and education can also be misunderstood if you don’t think carefully about the actual long-term ROI.
The Debt Framework — The biggest takeaway from the episode is simple: use debt to buy appreciating assets and use cash to buy depreciating assets. Debt can amplify returns when the asset goes up, but it can destroy wealth when used to finance things that are losing value.
Every major purchase is either helping fund your future wealth or your present comfort. Build the assets first, use debt strategically, and stop borrowing money for things that go down in value while ignoring the assets that can make you wealthy over time.
Here’s a link to the Q&A episode that was posted on Thursday.
You can submit questions for these episodes by asking them inside of the Rich Habits Network, replying to this email, or sending us a DM on Instagram.
The Rich Habits Podcast is available on Spotify, Apple, iHeart, YouTube, and wherever else you get your content!
Austin’s Callout
Three S&P 500 sectors just hit dot-com and financial crisis extremes.
Relative to the rest of the market, Healthcare is trading at levels we last saw in March 2000. Consumer Staples is back to December 1999 pricing. And the S&P 500 Financials sector just broke below its March 6, 2009 relative low. This is a relative valuation chart. It's measuring how these sectors are priced compared to the rest of the S&P 500.
And what it's telling you is that Healthcare, Consumer Staples, and Financials have been left so far behind by the AI and tech mega-cap rally that they're now trading at the same relative discount they hit during the two biggest market dislocations of the last 25 years.
Think about what was happening in March 2000 and March 2009. In 2000, every dollar was chasing tech and telecom stocks. Nobody wanted boring healthcare or staples — they wanted Cisco and Intel and JDS Uniphase. In 2009, nobody wanted financials because the entire banking system was collapsing. In both cases, the sectors that everyone abandoned ended up being some of the best investments of the next decade.
Capital has been flooding into AI, semiconductors, and mega-cap tech for two straight years. The Magnificent Seven stocks account for an enormous share of the S&P 500's total gains. Meanwhile, the "boring" sectors — the ones that pay dividends, grow earnings steadily, and serve fundamental human needs like healthcare and groceries — have been completely ignored by the market.
History doesn't repeat exactly, but the pattern is consistent: when capital concentrates this aggressively into one corner of the market, the sectors left behind eventually snap back. It happened after 2000. It happened after 2009. And the Weniger chart suggests we may be approaching a similar inflection point for Healthcare, Staples, and Financials.
Robert’s Callout
This isn’t another meme stock mania.
With semiconductor stocks surging and AI-related names leading the market higher, many investors are drawing comparisons to the speculative frenzy of 2021. On the surface, the similarities are understandable — a handful of stocks are generating outsized returns and dominating financial headlines.
But the underlying market structure looks very different.
In 2021, the strongest returns came from the smallest companies in the market. The further down the market-cap spectrum you went, the higher the returns tended to be. GameStop, AMC, and dozens of other speculative names became the face of a market driven by retail enthusiasm, stimulus checks, and risk-taking.
Today, the opposite is happening. The largest companies are generating the strongest returns, led by semiconductor and AI infrastructure names like Nvidia, AMD, Micron, and Broadcom. These are companies with durable business models and positive earnings. They're some of the most profitable and strategically important businesses in the world, benefiting from a massive wave of capital spending on AI infrastructure.
Speculative bubbles are typically characterized by investors chasing unproven companies with little regard for fundamentals. What we're seeing today is a market rewarding firms that are delivering real revenue growth, real earnings growth, and tangible cash flows tied to one of the largest technology investment cycles in decades.
That doesn't mean valuations can't get stretched or that volatility won't occur. But if you're wondering whether 2026 is simply a repeat of 2021, the data suggests the market leaders today have far stronger fundamental support beneath them than the meme stock darlings of the last cycle.
The Rich Habits Radar
👉 Alphabet moved to raise $80B for AI infrastructure spending.
👉 SpaceX reportedly targets a record $75B IPO raise at a $1.75T valuation.
👉 Goldman projected Big Tech spending to top $5T by 2030.
👉 South Korea’s chip giants surged as they rode the AI memory boom.
👉 Wall Street hit record highs as AI optimism outweighed U.S.-Iran concerns.
👉 ADP private payrolls rose by 122K in May – the strongest in 16 months.
👉 Anthropic filed its draft S-1, giving the AI giant a path toward a potential IPO.
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