The Dividend Cafe - Dividend Cafe - Special Midweek Edition - Live from Washington D.C.

Episode Date: March 10, 2020

*Please go to dividendcafe.com to read this important post** I wrote an awful lot of stuff over the weekend for this special mid-week Dividend Cafe.  I wrote about the bizarre reality that with three days last week that the market was down nearly 1,000 points (Friday's was intra-day, but it did come back at the end of the day), the market was actually up 450 points last week.  I wrote about various peripheral economic and market realities that I thought useful in the fuller context of the current state of affairs.  And then Monday happened, and I have spent the 3 am - 6 am hours of Tuesday morning re-writing the entire thing. I hesitate to even mention that as I type, the market futures are pointing to a 650+ point jump in the market (it had been a lot more).  First of all, that is just a small part of yesterday's collapse, and secondly, by the time I am done typing this paragraph, let alone by the time you are done reading it, the possibility of reversal or adjustment is extremely high.  These are the times in which we find ourselves. You should have received my bulletin last night on the 11th worst market day in history that was Monday (and the worst day since the financial crisis).  I stand behind every word written yesterday afternoon and will be reiterating much of it in this Dividend Cafe.  But I really want to dive deeper into the oil saga playing out with Saudi and Russia, and I really want to unpack more of the economic ramifications of the present hysteria.  That is what this Dividend Cafe will be devoted to - a bit more meat on the bone, none of which is meant to take away from the fundamental behavioral lessons I am desperately trying to reaffirm in all communications right now. So jump on into this special Dividend Cafe Links mentioned in this episode: DividendCafe.com TheBahnsenGroup.com

Welcome to the Dividend Cafe, financial food for thought. today. There's the Capitol building right behind me. I've just arrived in Washington, D.C. The day after the 11th worst day in market history. As I stand here, we're getting ready for the market to open. Still have about another half hour. But in the three-hour train ride I had from New York to D.C. this morning, markets have maintained a pretty high futures positioning, indicating a higher opening. Not quite the 1,000 points it looked like we were going to open, but right as I stand here now, over 700. I have no idea that's going to hold or not. Part of the reason I'm here in D.C. today is meeting with Larry Kudlow, who's the National Economic Council director in the White House. And the White House is preparing today to announce the plans of what they intend to try to go to Congress with to get approval regarding some sort of stimulus package, possibly a payroll tax cut and other measures.

There's a lot right now that I want to unpack regarding the Russia and Saudi Arabia oil war, which is essentially what was the big accelerant to the already traumatized markets around the coronavirus hysteria. And so in the midst of where we expect things this week, high volatility, high uncertainty, a high uncertainty is probably going to last a lot longer than just this week. We are very much trying to formulate an understanding of where policymakers are and what to expect. So I am going to have to leave the podcast and the video there, but encourage people to go to DividendCafe.com, where I have written on the train this morning a rather extensive commentary of a whole lot of the events going on right now. Please reach out to us with any questions. I will be giving a summary of my

meetings today with administration officials and much more to be said this week. Thanks again for listening to The Dividend Cafe. Thank you.