'Beat-up bear' Rhoads says the market's tough times will be here soon

Russell Rhoads, a professor of financial management at Indiana University and the co-host of Academic Market Insights, says that the market's Wednesday rally was about getting political uncertainty behind us, but Thursday's selloff was focused on flagging fundamentals for artificial-intelligence companies. Rhoads, who acknowledges that being bearish has cost him in terms of missed upside, says that if the market falls through its 200-day moving average, it is likely to be "the every-five-year correction that seems to be a bit overdue right now." He sets that the market could easily shed about 1,000 points on the Standard & Poor's 500, but notes that kind of pain would mostly be a set-up for the next leg up, and would likely move him to where he becomes bullish again.

Mike Dinsdale, chief executive officer at Powerlaw Capital Group says that as companies like SpaceX and OpenAI reach unprecedented valuations, the importance of capturing private markets grows for ordinary investors. To that end, the firm launched Powerlaw Corp., a late-stage private technology closed-end fund on the Nasdaq in May; unlike most closed-end funds that have gravitated toward pre-IPO markets — including the two featured in last week's NAVigator segment — Powerlaw has daily liquidity, which can make investors feel more safe and in control. He also explains how a fund in venture capital — an investment — area not known for throwing off income — can provide a 6% distribution yield.

In the Market Call, Will McGough, chief investment officer at Prime Capital Financial makes his debut and talks about looking through the labels," — especially when stocks are labeled as being A.I. stocks — to find the right mix of assets to hold now.