The markets are doing well, major indexes are near record highs, and earnings season has produced plenty of beats and raised forecasts. But whether stocks are soaring or falling, investors should remember one important lesson: this too shall pass.

Negative headlines can make investors feel like they need to sell when prices are falling or chase stocks when prices are rising. Palantir is a perfect example. When PLTR was trading just above $100, negative articles were everywhere. After crushing earnings this week, the stock has now gained nearly 40%.

The July employment report showed that the U.S. lost 23,000 jobs when economists expected more than 80,000 jobs to be added. While that is concerning for the economy, weaker employment data may also reduce the likelihood of the Federal Reserve raising interest rates soon.

SpaceX’s first lockup period also expired, making more than 900 million additional shares eligible for public trading. Many investors expected heavy selling pressure, but SpaceX shares finished the week up approximately 23%.

AI continues to be another major theme. Palantir is producing real growth, semiconductor stocks moved higher, and Airbnb showed how AI agents can improve customer service, increase productivity, and reduce operating costs. Airbnb shares jumped more than 17% after earnings.

Now imagine similar efficiency improvements being adopted across companies such as UPS, Amazon, Home Depot, and thousands of other businesses. We believe the AI buildout is still early, and companies are already demonstrating that the technology can produce meaningful financial results.

The long term plan remains the same: stay invested, stop trying to time every market move, dollar cost average, and trust the process.

Hosted by James Walters, CIMA®, CRPC®, and Brandon West, CPA, co-owners of West & Walters Tax and Wealth Management, a Registered Investment Advisor (RIA) and tax firm based in Carlsbad, California. Our goal is to share market insights, investing tips, tax strategies, and straightforward financial education to help viewers make smarter financial decisions. All Information is educational in its intent and distribution! Please do not consider this personal financial advice. We believe all clients have unique situations and thus require unique advice.

James Discusses market news, behavior psychology, and investing with or against progress... and progress always wins.

This week’s Market Friday recap covers IPOs, ADRs, international investing, crypto regulation, geopolitical risk and the continued AI industrial revolution.

Our term of the day is IPO, which stands for initial public offering. SK Hynix was already publicly traded in South Korea, but the company completed a massive U.S. public offering of American Depositary Receipts and began trading on the Nasdaq.

An ADR, or American Depositary Receipt, is a U.S. traded security that represents shares of a company based outside the United States. ADRs make it easier for American investors to invest in foreign companies through U.S. markets and in U.S. dollars.

SK Hynix is one of the largest memory chip companies in the world and a major supplier of the high bandwidth memory needed to power AI data centers. The stock jumped roughly 13% during its first day of U.S. trading, showing just how much investor demand remains for companies connected to the AI buildout.

South Korea is also home to major global companies such as Samsung and LG, although not every foreign company is available to U.S. investors through the same ADR structure.International stocks do not always move in the opposite direction of U.S. stocks. However, owning companies across different countries can provide diversification because different economies and markets may lead at different times. International stocks outperformed U.S. stocks during 2025, but during a major global crisis, correlations often increase and markets around the world can fall together.

We also explain the Peter Lynch term “ten bagger,” which describes an investment that grows to ten times its original value. Investors who select individual companies are searching for exceptional long term winners, but they also accept greater company specific risk. Investors who purchase an S&P 500 index fund are instead relying on the long term growth of hundreds of major companies without needing to identify the next ten bagger.

Circle also received approval to establish a national trust bank. This does not mean Circle is becoming a traditional consumer bank with checking accounts, loans or rewards for depositing crypto. The new bank will initially focus on digital asset custody and strengthening the regulated infrastructure supporting USDC.

Finally, we discuss renewed conflict involving the United States and Iran. Markets did react during the week, but they continued to show impressive overall resilience. Investors appear focused on whether the conflict becomes a larger and more lasting economic event, particularly through oil prices, inflation and the Strait of Hormuz.

Barring a major escalation in global conflict, 2027 could be an incredible year for businesses, technology and the markets. The AI industrial revolution is no longer something coming in the future. It is already here and happening now.Hosted by James Walters, CIMA®, CRPC®, and Brandon West, CPA, co-owners of West & Walters Tax and Wealth Management, a Registered Investment Advisor (RIA) and tax firm based in Carlsbad, California. Our goal is to share market insights, investing tips, tax strategies, and straightforward financial education to help viewers make smarter financial decisions. All Information is educational in its intent and distribution! Please do not consider this personal financial advice. We believe all clients have unique situations and thus require unique advice.