Carson's Detrick Sees No Stock Slowdown Anytime Soon

“We don't see a recession on the horizon. We just had a very strong earnings season with corporate America justifying, we think, kind of where stocks are currently. So there's still more reasons than not for us to think ‘ride the wave in 2026,’” he said.

Detrick spoke to ThinkAdvisor shortly before Nvidia released its third-quarter results and raised revenue guidance for the fourth quarter, sending its stock higher in after-hours trading.

Nvidia shares climbed 5% in pre-market trading Thursday, and Nasdaq, S&P 500 and Dow Jones Industrial Average futures all rose as well. The stock represents about 8% of the S&P 500 by market capitalization, Detrick noted.

“The big question with AI is, is it a bubble? ... We've been hearing that for a while. We don't think so. You know, maybe those stocks got ahead of themselves a little bit, but these, uncomfortable corrections are part of the process if you're going it invest in high flying volatile names like the AI world,” Detrick said.

“So just remember, they say the stock market's the only place things go on sale, everybody runs out of the store screaming . ... but the truth is, a lot of these AI-based names are on sale right now. And it doesn't mean they're going to bottom today or bottom anytime immediately.

“But if you're willing to look out six months to a year from now, probably some really nice opportunities in some of these beaten-up former high flyers,” he said.

Nvidia shares, usually strong heading into earnings, were weaker this time but Carson Group expected solid results, he said, noting that other AI firms also have been making positive statements.

In a follow-up email Thursday, Detrick added, “NVDA proves once again that death, taxes, and Nvidia beats on earnings are things you can always count on in life. So many investors were worried about AI, but this report shows demand isn’t slowing down and many of these beaten-up names could be worth dipping toes into.”

Concerns over the AI boom’s trajectory and the Federal Reserve’s decision on whether to lower its benchmark interest rate next month have pressured stocks recently, but the release of the recent Fed meeting minutes Wednesday also may offer cause for optimism, Detrick said in the interview.

“The market has been weak lately over worries there will not be a Fed cut in December. Today's Fed minutes crack the door that there could be a cut,” he said.

The September jobs report released Thursday reportedly boosted sentiment that the Fed could make another rate cut next month.

“The labor market didn’t crack as of September. We see signs it could be slowing down, but that’s the key thing. Slowing down isn’t cracking,” Detrick said, adding that economic slowing could accelerate early next year.

As for guiding clients through volatility, “There are going to be bad days, there are going to be bad periods every year. You're going to see that. And the S&P’s about 4% off the highs as of yesterday,” Detrick said Wednesday.

“After a six-month win streak for the S&P 500, to see some weakness, to see some consolidation through the first part of November, to us is perfectly normal and actually quite healthy,” he said. “To see the market catching its breath, shaking out some of the weak hands and likely opening the door, we still think, for strong end-of-year rally before all is said and done in 2025."

On average, markets see three 5% mild pullbacks and one 10% pullback a year and a bear market every 3.5 years, Detrick added. “It puts in context that this year, after a seven-month, a six-month win streak, we've been pretty spoiled. ... We're due for a little market volatility and clearly we've seen it, but that's why it's important for advisors to remind clients that volatility is the toll we pay to invest.”