) have had solid footing in 2024 despite some hiccups, until the Dow Jones Industrial Average spilled 600 points in a single day this week — the worst trading day of the year for the average. Pernas Research Co-Founder Deiya Pernas and Mahoney Asset Management CEO Ken Mahoney join Market Domination to discuss the state of index investing. Pernas believes investors' biggest worry should be"complacency" in the indexes.
So I think that if there's any sort of risk, it's a risk of complacency, the broader broader index, if you look at uh investment grade spreads, if you look at high yield spreads, all of those are near 10 year lows. So at first again, it kind of sounds like cliche, but seriously, we went from April showers to May flowers and you know, the Bears really had a good opportunity.
We saw happened this week one example in the video, but there's a lot of examples this earnings season, especially in technology. Uh There are large cap quality names that we really like, you know, Ken, uh I, I, you know, you mentioned meta and some of the uh huge spend that's going into uh GP US and the data center infrastructure that surrounds them.Uh But, but as far as uh WW we try to, we try to look at different areas of market where there is value and right now where there is where we are seeing value is some of these smaller cap names that have a little bit more debt that have variable rate debt.
So again, we still like the big tech, we like these companies because let's face it, Meta has 3 billion.