The Seven Rules of Wall Street | Sam Stovall

📈 In this episode of Excess Returns, we’re joined by Sam Stovall, Chief Investment Strategist at CFRA and author of The Seven Rules of Wall Street. We explore Sam’s timeless, data-driven investing rules and connect them to today’s market environment—including sector trends, interest rates, Fed policy, investor behavior, and why market history is one of the most underrated tools for navigating uncertainty. This conversation blends historical perspective with practical insights, making it essential viewing for long-term investors and students of market behavior alike.🔍 Topics Covered:The power of rules-based investing and emotional disciplineWhy momentum often beats mean reversion in sectorsThe predictive value of January market performanceHow AI hype is shaping today’s market narrativeWhether “Sell in May” still works—and what to do insteadThe case for value investing and high-quality dividend stocksA simple two-sector portfolio that beat tech (with less risk)Whether the 60/40 portfolio is still viableThe failure of equal weight and small caps to outperform recentlyHow to manage fear and stay invested during volatile marketsWhat history teaches about Fed rate cuts and market returnsA momentum strategy for finding “bull markets somewhere”Sam’s top lesson for the average investor⏱️ Timestamps:00:00 – Market performance after strong Januaries02:00 – Let your winners ride, cut losers short04:45 – Current sector winners and market concentration06:30 – As goes January, so goes the year09:00 – Why Year 3 of bull markets tends to be weak11:00 – How AI fits into today’s bull case12:30 – Sell in May—but rotate instead of retreat14:30 – Why value investing has struggled16:00 – Tech as the new consumer staple?17:45 – A free lunch: Tech + staples portfolio20:30 – The 60/40 portfolio and inflation hedging22:20 – Don’t get mad, get even (equal weight vs. cap weight)24:00 – Managing emotions and using history as Valium26:20 – Don’t fight the Fed: Rate cuts and market returns28:30 – CFRA’s Fed outlook for the second half29:40 – There’s always a bull market somewhere31:20 – Sam’s #1 lesson for the average investor