Editor’s Note: The Nasdaq and S&P aren’t far below all-time highs. Big Tech earnings, overall, are wowing Wall Street. And FOMO is rising.
But as we’ve seen before, not every rally ends well.
Today, we’re turning over the Digest to our macro investing expert Eric Fry for a timely take on what’s unfolding in the markets.
In his essay below, Eric draws an unexpected – but surprisingly revealing – analogy between his decades playing beach volleyball in Southern California and navigating today’s investment landscape.
You’ll see why some stocks soaring right now may have run too far, too fast… why others are starting to break down mid-rally… and why only a select few have the fundamentals in place to deliver real, lasting gains.
If you want to avoid the AI hype stocks and find the companies with strong footing and room to run before their next earnings drop, today’s Digest is essential reading.
Enough introduction. I’ll let Eric take it from here.
Have a good weekend,
Jeff Remsburg
I’m a native Southern Californian, so it probably won’t surprise you to hear that I’m an avid beach volleyball player.
In fact, I’ve been playing for decades, and spent my “crazy youth” of the 1980s at the volleyball nets ofCalifornia’s beaches.
Although I have jokingly referred to the sport as my “real job,” the truth is that playing volleyball has similarities to playing the market, especially during a rally.
Like the one we’re experiencing right now.
On Friday, the S&P 500 and Nasdaq Composite indexes both hit record highs during intraday trading. They started out even higher today largely due to optimism surrounding yesterday’s trade agreement between the United States and European Union
This upward trend may continue this week, as several big tech companies deliver earnings.
While the “fear of missing out” may have you wanting to participate in this rally, you should still do so cautiously.
Here’s what my time at the net has taught me about smart investing…
Beach volleyball, like the markets, also consists of rallies. In the sandy game, though, a rally is the sequence of hits back and forth between teams during any given point.
A volleyball rally always starts with a serve – and it ends in only one of three ways…
1.The ball lands out of bounds.
From an investing angle, you can think of this as companies with sky-high valuations. While these firms may seem attractive to investors, like Nvidia Corp. (NVDA), the truth is that their valuations are overshot, landing them in the stratosphere.
For instance, Nvidia’s market cap sits at $4.23 trillion, the highest in the world. It is currently trading for 56X its trailing price-to-earnings (P/E) ratio, or about double the market average.
I recommend avoiding out-of-bounds stocks like these because their high valuations yield to low valuations… eventually.
Instead, you’ll want to focus on companies that land squarely within the winning parameters of the court. That is why I look for companies that have a promising runway built by strong fundamentals – attractive valuations.
In fact, I recommend one such company over Nvidia. And it is set to report its second quarter earnings for 2025 tomorrow, July 29. Analysts expect this company to beat estimates with over 20% year-over-year earnings growth and nearly 7% year-over-year revenue growth.
You can learn how to access all of the details about this company – before its earnings call – by clicking here.
This brings me to the second way a volleyball rally…
2.A team commits a fault, like failing to return the ball over the net.
You can think of this as companies that miss the mark. Like Tesla Inc. (TSLA), as we talked about in last Saturday’s Smart Money.
The company announced last week that it missed both top and bottom lines for the second quarter of 2025. This is largely due to declining vehicle sales. CEO Elon Musk said that the company “probably could have a few rough quarters” ahead.
What’s more, Tesla is well behind the pace needed to meet its stated goal of producing at least 5,000 Optimus robots this year. The company has so far only produced a few hundred.
Tesla is failing to return and is, therefore, not a stock that we want in our portfolios.
I’ve got my eye instead on a company that is successfully sailing over the net. It’s a robotics company that is a direct competitor to Tesla, and its current backlog means there’s another $23 billion in future sales already baked in the cake. You can learn the name of this company, for free, here.
Of course, the most favorable way to end a beach volleyball rally for the serving team is when…
3. A point is scored.
You don’t have to be a beach volleyball fan, or even a sports fan in general, to know that scoring a point is the only way to win.
Of course, as investors, we also want to “win” the rally.
The best way to do that is to play it right. You don’t want to stock up on overvalued or faulty companies. In fact, I recommend selling those types of stocks if they are in your portfolio right now.
You want to invest in the right stocks at the right time.
That’s why I’ve compiled a list of three companies that I believe are “Buys.” These are under-the-radar, early opportunities that can help you protect and multiply your money during make-or-break markets.
You can find the details of these companies – ticker symbols and all – in my brand-new special broadcast, free of charge.
Another deep run in the NCAA Tournament is over for the No. 1 seed Texas Longhorns (26-4) after falling to the No. 3 seed Wisconsin Badgers (28-4) in the Elite Eight on Sunday at Gregory Gymnasium in a 3-1 defeat.
Texas was consistently out of system for the entire match and struggled to consistently match Wisconsin in any area of the game even though the Horns held a statistical edge in several categories. The biggest issue was the subpar performance from junior outside hitter Torrey Stafford, who hit .132 with nine kills and four attacking errors — the Longhorns needed more from their star, outshone on her home court by Badgers standout Mimi Colyer notching a match-high 23 kills on a .309 hitting percentage.
The young Texas team struggled to find answers across the board as head coach Jerritt Elliott tried to find sparks from his bench, a failed effort.
In the first set, both teams came out swinging and stayed neck to neck attacking the net at 5-5. True freshman outside hitter Abby Vander Wal aided the Longhorns with four kills during the set, alongside fellow true freshman outside hitter Cari Spears landing three kills in the first set. Texas was able to gain a small lead as Wisconsin continued to capitalize on attacks and force errors to gain a 23-17 lead. Longhorn middle blocker Nya Bunton snagged a two kills for Texas as the match closed out with Wisconsin taking the opening set, 25-22, despite the Longhorns saving five set points.
In the second set, Wisconsin jumped out to an early 4-2 lead with Colyer snagging early kills. The Longhorns cut the lead to 11-10 by forcing attacking errors, but the Badgers stayed steady, maintaining their lead with outside hitter Grace Egan swinging strong at the net to extending the lead to 18-13. The Longhorns stayed in the match with the leadership of senior outside hitter Whitney Lauenstein tagging four late kills, but the Badges closed the second set, 25-21, having never trailed in it.
All gas in the intense third set with both teams pumping attack after attack with the Longhorns taking a 8-7 lead. While both teams stayed on each others heel’s by countering each other’s attacks until Longhorn setter Rella Binney served back-to-back aces to put Texas up 15-12. The Longhorns stood strong at the net, forcing Badger errors to close the third set, 25-20, to prolong the match, albeit only briefly.
In the fourth set, the Longhorns use the momentum from the third set and go on a 4-0 run with kills from Vander Wal and Spears. The Badgers did not lay down as they were able to for errors and counter attack with the aid of outside hitter Una Vajagic to go on a 12-4 run, putting Wisconsin up, 12-8. The Longhorns managed a 4-0 run while libero Ramsey Gary landed an ace bring the match to 18-15, but the Badgers eventually closed the fourth and final set by forcing seven Longhorn errors to end the match, 25-19.
Penn State women’s volleyball got itself a setter from the portal.
The Nittany Lions earned the commitment from Florida setter Alexis Stucky.
Stucky was teammates with now-Penn State right-side hitter Kennedy Martin during her first two seasons with the Gators. This past season, Stucky showed that she was a great setter with or without Martin. She had a career-high 56 assists against Missouri and had over 300 kills this season.
The two are back to being teammates, and the blue and white have a new setter.
Stucky will join incoming freshman Danielle Whitmire as the two setters on the team.
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Penn State went to the transfer portal for key acquisitions last season with the likes of Ke…
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AUSTIN, Texas (WKOW) – Wisconsin volleyball is celebrating a thrilling victory after defeating top-seeded Texas in the NCAA regional finals. The Badgers, led by coach Kelly Sheffield, will advance to the Final Four.
Sheffield’s team triumphed in four sets, 25-22, 25-21, 20-25, 25-19, marking their sixth Final Four appearance under his leadership, and seventh overall in program history. This victory is Wisconsin’s first Elite Eight win at an opponent’s home venue.
The Badgers’ win comes after a previous loss to Texas on Aug. 31.
Wisconsin will face Kentucky in the national semifinals on Dec. 18, with Pittsburgh and Texas A&M also in the Final Four. The Final Four takes place in Kansas City.
MADISON (WKOW) – The Badger volleyball team is still dancing after upsetting the University of Texas in Austin for the Elite Eight of the NCAA volleyball tournament. The Final Four will take place in Kansas City, MO.
NCAA scheduling shows the Badgers will take on the Kentucky Wildcats in the second game of the day Thursday at the T Mobile center. Match #1 with Texas A&M and Pittsburgh is scheduled to start at 5:30 p.m. on the 18th.
The Championship is Sunday at 2:30 p.m.
With Thursday’s matches, the NCAA will open a “Fan Zone” from 4 p.m. to 9 p.m., with the Fan Zone reopening for Sunday’s Championship. Attendees will experience engaging sponsor displays, autograph sessions, photo opportunities and other interactives. Wisconsin also has open practice on Wednesday starting just before 3 p.m.
MIAC Men’s Basketball Offensive Player of the Week Jake Schmitt Gustavus Adolphus College Jr. | Guard Plymouth, Minn. / Wayzata
Jake Schmitt led the Gusties to a 95-80 win over Saint John’s on 12/10 with 24 points on 8-for-11 shooting while going 5-for-8 from beyond the arc. Schmitt also had three steals, three assists, and three rebounds in the win.
MIAC Men’s Basketball Defensive Player of the Week Sam Koelling Carleton College Jr. | Forward Ann Arbor, Mich. / Skyline
Sam Koelling averaged 9.0 rebounds, 2.5 blocks, and 23.0 points per game in a 2-0 week for the Knights with wins over Macalester (12/10) and Northwestern (12/13). Koelling had a 21-point, 10-rebound double-double with four blocks in Carleton’s win over the Scots and turned in 25 points, eight rebounds, and another blocked shot against the Eagles.
CLEVELAND – The Ohio volleyball team placed seven athletes on the 2025 Volleyball All-Mid-American Conference Team, as announced by the league on Monday, Dec. 15.
Eastern Michigan, Miami, and Western Michigan led the league with eight student-athletes honored. Ball State, Buffalo, Central Michigan, and Ohio followed behind with seven honorees each.
The Academic All-MAC honor is awarded to a student-athlete who has excelled in both athletics and academics. To qualify, a student-athlete must have a cumulative GPA of at least 3.20 and have participated in at least 50 percent of the contests in that sport.
