The Dividend Cafe - The DC Today - Tuesday, July 11, 2023

Episode Date: July 11, 2023

Today's Post - https://bahnsen.co/46Mbde0 Markets today rallied even with all eyes on tomorrow’s CPI number. Three Fed governors have doubled down on the need for more rate hikes in the last 24 hours. China is releasing a wide array of policy support measures to support its floundering property market and construction industry. Warren Buffett/Berkshire Hathaway has taken a 75% interest in one of the country’s major LNG export facilities (liquefied natural gas). For those keeping track, we only have seven operational facilities in the country that can currently export LNG. There is a longer-than-normal answer in Ask David today because the question was a very thoughtful one. Check it out below! Links mentioned in this episode: TheDCToday.com DividendCafe.com TheBahnsenGroup.com

Welcome to the DC Today, your daily market synopsis of the Dividend Cafe, brought to you every Monday through Thursday to bring you up-to-date information and perspective on financial markets. Well, hello and welcome to the Tuesday DC Today, a big rally day in markets. And I'm just going to cover kind of the quick highlights as I'm getting ready to go into a meeting. But I would have expected a more tame day the day before CPI. So some conspiracy theorists might say, well, perhaps they've already leaked the CPI is going to be really weak and that's going to bring on the bulls. Others may just say that there were traders setting up positions today in front of the CPI move today. Who knows? It's entirely possible the rally continues tomorrow.

It's entirely possible we flatline. And of course, it's possible we give everything back. But these days, there has been a lot of back and forth volatility. This is an underlying theme of what we've predicted for some time. A lot of moves up, a lot of moves down. And in the end, not a huge secular direction one way or the other. This is the kind of market we're in. It is the kind of market we've been in. And being up 400 points in a couple of days and being down 400 points last week in a day or two, that's the

back and forth reality of the market that we're in. So yes, tomorrow, the CPI number for the month of June will come out. Today, the NFIB small business optimism number came out. It's not what moved markets today. It's not a big enough deal to do so. But it did reach a seven-month high, and there is a little surge of confidence coming about from small businesses that certainly has to be taken into account. out from small businesses that certainly has to be taken into account. A couple other news tidbits that are not real relevant to the market, and then I'll give you the recap of today's market day. A lot of stuff coming out of China, I'm finding more and more interesting that some of the policy measures they're going to do to support their property market, to support some of the construction companies. There's a lot of, shall we say, Japan-like activity going on in China.

And some of these things I'm referring to in the property sector are more recent in the last 24, 48 hours. But the bigger theme of whether or not China may choose to go down a Japanification path in terms of the way they deal with some of their deflationary pressures right now is a very big deal. And I'm definitely going to devote a whole dividend cafe to that subject in the coming weeks. I'm in the midst of quite a bit of research on it. Interesting tidbit, it was in the news that Berkshire Hathaway, Warren Buffett, took a 75% interest in one of the country's major LNG export facilities, liquefied natural gas. We only have seven operational facilities in the whole country that can deliver

liquefied natural gas away from our shores to global customers, whether they be elsewhere in North America or Asia, Europe, et cetera. Kind of a big activity there. And of course, it's a space we've been invested in for many years and we care deeply about. So the Dow was up over 300 points today, et cetera, kind of a big activity there. And of course, it's a space we've been invested in for many years and we care deeply about. So the Dow was up over 300 points today, 1%. The S&P was up

about 0.67%. The NASDAQ was up half a percent. Bonds were up a little bit as the 10-year treasury dropped three basis points in yield. Energy was the leading sector at 2.2%. A lot of asset managers and financials did very well today. And then the worst performing sector was healthcare, which was still basically flat up 0.01%. So you had all 11 sectors in green territory. And then oil was up 2.47%, almost back to $75 a barrel. A longer question came about in the Ask David today about whether or not it is true that when the United States buys things from other countries and pays them in dollars, whether or not those dollars do end up benefiting the U.S. economy. And I thought it was a great question that allowed me to unpack a little more economic truth for you, which is one of my favorite things

to do. So read the Ask David in DC Today. Clients will receive their weekly portfolio holdings report tomorrow, along with a very special kind of first half of the year video preview. And we'll go from there. That's about all I got today. Brian Seitel will bring you DC Today tomorrow as I will be flying to Washington DC and I will be bringing it to you from Washington DC on Thursday. Thanks for listening. Thanks for watching. Thanks for reading the DC Today. The Bonson Group is a group of investment professionals registered with Hightower Securities LLC, member FINRA and SIPC, with Hightower Advisors LLC, a registered investment advisor with the SEC. Securities are offered through Hightower Securities LLC. Advisory services are offered through Hightower

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