Terms of Endear and Endangerment: Stock Market Update, Friday October 3, 2025

 

With the markets sitting in late September and early October, a time period I call the quarterly “dead zone” for corporate news, and stock buyback blackouts, and at the fiscal year end for many institutional investors, I’m stepping away from my normal data driven videos. But remember investors, historically, the 4q/“Xmas”/Santa Claus rally begins right around the corner in the 2nd week of October, not in Mid-December. And I believe, you are likely to hear talk of the year end “chase for performance” over the next few months.

In order to elicit emotional responses and retain your attention, the financial media likes to throw around a lot of terms that are catchy and easy to remember.  Just last week the AI “Bubble” talk began ramping as a “theme” and a talking point largely presented by individuals and strategists who largely have been negative and missed a large part of the rally the last few quarters and 2 years.  But hey, everyone knows that term is scary so its memorable even if these individuals have been more wrong than most for years.

It got me thinking are there other catchy terms if a retail investor hears on TV from so-called experts, that they should run to or away from?  The big one that comes to mind to me is the term “uninvestable.  The term uninvestable as a sector or asset class has been thrown around on many occasions over the last 10 years by people in the financial media.  But if you were an investor, were you better running to that group or away from whenever you heard it?

Thinking back, the first time I heard that term uninvestable loudly on TV was early on in President Obama’s first term.  I recall back then many calling the healthcare sector and more specifically the HMO and health insurance group as “uninvestable” as Obamacare was discussed as the socialization of healthcare and a government takeover. Well what happened under President Obama to the HMOs stocks performance wise?  They were one if not the best performing group during his 2 terms.  UNH, united healthcare was up almost 600% over his 8 years as president, compounding investors’ money at over 27% per year!  That sounds to me like one hell of a return for an uninvestable sector?

Another prime example happened during Joe Bidens term as President in 2020. Back that I recall old line, fossil fuel oriented, so called “dirty energy” be labeled as uninvestable as President Biden favored clean renewable energy sources over traditional fossil fuel-based investment.  Conventional wisdom was invest in renewable energy names over old line energy. How wrong was that call?  Slow growth XOM’s stock went from around $33/s to about $122/s over Bidens 4 years in office. That about a 270% gain or over 38% per year.  Far from uninvestable, it also was one of the best sectors over the 4 years after that group was labelled it.

If you think I’m being biased and picking on Democratic Presidents, lets think to President Trump term.  What group was supposed to be uninvestable under him?  Clean energy and renewables? And what country was supposed to be uninvestable?  China?  How did those two uninvestable areas do? Since Trump 2.0 started the Clean energy ETF is up almost 30% in 9 months compounding at over 35% per annum.  In August 2023, the US Commerce Secretary called China uninvestable, since then? The poster child for investing in China, Alibaba is up over 115% cumulative compounding at over 45% per year.

Recall back after President Trump was elected in November, many strategists in the media were calling “alternative and clean energy that dreaded word, which should draw investor interest toward not away from?!  That word?  Uninvestable.  And behold, while the traditional “energy” sector has been a laggard, these more speculative names, dare I say Uninvestable cleaner energy areas in the solar, uranium, and nuclear subindustries are some of the highest returning groups and sectors YTD.

Ok Chris so if we hear that word, Uninvestable, maybe run to the group and do some research not run away out of fear mongering.  Any other words to key on?

Yes, lately I’ve heard a whole lot of these words and phrases in the financial press and they all are words of “warning and danger” to me.  Here’s a short list that gets me suspicious: the words or terms, “the fact is”, or “honestly”, “in reality”, or “this time it’s different”. Lately, almost many commentators saying “the fact is” when in fact, what follows out of their mouths aren’t facts backed by numbers but opinions.  Same thing gets my going when people say “honestly”. When I hear that word, I honestly think so great you’ve been lying to me all the other times we are talking?” So I tend to run away from investment ideas or people using those terms too much.

Investors that it for the week.  Some fuzzy advice from me as opposed to my usual data-based videos.

The next time you hear the term uninvestable in the financial press, stop for a couple of days and do your own research, you might discover a hoard of prime investment opportunities that the herd is ignoring or running away from just as you should be running toward them.

For those investors who didn’t panic and think the world was uninvestable in April during the tariff tantrum, and who stuck with your financial plan congratulations.  Know that regardless of the path for the economy and financial markets in the next few months, the investment team at OHFG will be here manning the ship and searching out both “investable” and those supposedly uninvestable areas for Oak Harvest clients.

Until next week, have a blessed weekend and know that the OHFG team is doing what we can to plan for you and your family’s future regardless of what stage you are at in your career or retirement.

Do you need a retirement plan that goes beyond allocating funds to truly fit your needs? We can help you create a retirement life plan customized for your retirement vision and legacy. Call us at 877-896-0040 or fill out this form for a free consultation: https://click2retire.com/lets-connect