Episode summary
Two Cents 6/27 - Where Is Money Being Made?; How Has The S&P Changed?
The Dentist Money Show
· · 50 min · Hosts: Matt Mulcock, Rabih Powell
Summary
The hosts argue that 2026’s market leadership is broadening beyond the Magnificent Seven. Small caps, developed markets ex-US, and a globally diversified portfolio have outperformed the headline megacap names, while the S&P 493 has done far better than the Mag 7 year-to-date. They say the rotation reflects shifting narratives: from data centers to memory chips, from a pure AI trade to energy after supply shocks, and from concentrated megacap leadership to wider participation across stocks.
They also frame the broader market as consistent with a stable economy that has a bit more inflation in it. Stocks are up, bonds are flat, commodities are softer, and the U.S. dollar is strengthening, which the hosts interpret as the market pricing growth with inflationary pressure rather than recession. They note that international returns look weaker for U.S. investors when the dollar rises, even when foreign stocks perform well locally.
The second half of the discussion focuses on how the S&P 500 has transformed from a mostly tangible-asset index into one dominated by intangibles. The hosts say that helps explain why book value and old-school balance sheet analysis can miss much of modern corporate worth, where code, brand, talent, IP, and customer relationships matter more than factories and inventory. They close by noting how quickly the top companies in the index rotate over time.
Key takeaways
- Small caps led year-to-date, with the Russell 2000 up 22%, while the S&P 500 was up about 8.5% and the Mag 7 only a little over 1%.
- The hosts say the S&P 493 outperformed the Mag 7 because institutional investors rotated away from overowned megacaps into the rest of the market.
- The hosts argue the market is pricing a growth-plus-some-inflation environment, with stocks up, bonds flat, commodities down, and the U.S. dollar stronger.
- Robbie says the rise of intangible assets means code, brand, talent, and IP matter more than factories for valuing many modern companies.
- The hosts say the top 10 S&P companies change so much that none of the 1985 top 10 are still there in 2025.
Notable quotes
“the market thinks that the period going forward is good growth, but is also with hints of inflation”
“the best performing companies year-to-date are small cap if you measure them through like the Russell 2000. 2000, they're up 22% year-to-date”
“what happened is the narrative slightly shifted away from data centers to memory”
“in 1975, 83% of the S&P 500 would be categorized as tangible assets”
How the episode opens
On today's show, three questions. Number one, where is money being made? Number two, how has the S&P changed over time? And number three, what in the heck does the NBA have to do with picking stocks? — Consult an advisor, conduct your own due diligence when making financial decisions. General principles discussed during this program do not constitute personal advice. This program is furnished by Dennis Advisors, a registered investment advisor.
Welcome to Dennis Money's Two Cents, where we help Dennis navigate all the noise. I'm Matt. — And I'm Robbie. — Yeah, you are. Robbie, last week you did a show without me. — Yes.
And I was feeling really bad about myself. Like you guys were moving on without me. So then I was like, you know what?
We're just doing a show, me and Robbie, so I can get more attention. So, okay, that's not really true. We just couldn't get any of the other guys on because it's just a busy time of year.
Um, so, but I'm glad to be here with you as always. Uh, really quick as we start, I'm giving uh, the ultimate shout-out to long-time fan, I don't know if of the show, but I think she's a fan of me. She's a fan of our team.
She's a big fan of our team. Shout-out to my daughter, Millie. She's 7 years old today.
Happy birthday, Millie. — Happy birthday, Millie. She's not going to listen to this, but I'm still going to give her a shout-out. I gave her her presents this morning. We're going to go do a little birthday lunch today. We're going to do a birthday movie tonight. We're doing a whole celebration today. It's a whole thing.
Whoa. — Yeah.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- market leadership shift
- s&p 500 evolution
- asset class performance
- apple market reaction
- currency and commodity signals
Companies and tickers mentioned
- AAPL
- Apple
- Dentist Advisors
- Aquire Wealth Advisors
Watch the episode
Watch “Two Cents 6/27 - Where Is Money Being Made?; How Has The S&P Changed?” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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The Dentist Money Show, this episode and its artwork belong to Dentist Advisors - Financial Planning and Investment Management. Octagon is not affiliated with the show; this page is an independent summary.
