The Dividend Cafe - The DC Today - Tuesday, June 6, 2023

Episode Date: June 6, 2023

Today's Post - https://bahnsen.co/3X7RBwR A flattish day in markets but a big rally in Financials … The SEC is suing Coinbase, the major publicly traded exchange for cryptocurrency, for violating securities laws and defying regulatory requirements. This company is down -80% in value from its high, and now there exists an investigation or active charges with every major crypto exchange firm. 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. Hello and welcome to the Tuesday DC Today, kind of a boring day in markets. I'm going to keep today a little short and sweet. I'm excited for clients to get their weekly portfolio holdings report that'll come in their inboxes tomorrow morning, Wednesday. If you open up the email of today's DC Today, there's a link to the appearance I just had today on the Kudlow Show. But as far as markets today, the Dow was up just 10 points, three basis points. The S&P was up 24 basis points, NASDAQ up 36. So slightly up, but barely in all three market indices. Oil was down less than 1%. It closed still at $71.50 a barrel on the WTI. I think within the market, perhaps something a little noteworthy is healthcare was the worst

performing sector down 0.8%. Nothing hugely substantial there, but again, continued weakness in some of those defensives. But then financials today were up 1.33%. And financials have been, of course, struggling, but you had asset managers, you had investment banks, you had commercial banks all rally today. Even as there wasn't a lot of activity in the bond market, I think the 10-year bond yield was down one basis point. It's still sitting in the three sixes. So you've had actually remarkably compressed bond volatility. So again, kind of an uneventful day overall in markets. By way of news announcements the sec

announced before the market opened this morning that they uh were bringing charges against coin base which is the big legit publicly traded exchange of crypto currency and coins uh in the u.s markets largely appealing to u.s. investors and trading on the NASDAQ, publicly traded, incorporated in Delaware, all the legit things. And fundamentally, what they're basically alleging is that what they do is illegal, by being in exchange for an unregistered investment product. So there is a sense in which for those that are interested in this shiny object that is the cryptocurrency world, you had Bitcoin and Ethereum rally quite a bit, which are

kind of outside of that unregulated token space. And then you had a lot of these other things just get pummeled. And so ironically, something that seems very, very negative for the whole space paradoxically helps a couple of the stronger and hurts the rest. Now I say stronger, weaker. I don't even like legitimizing this whole thing with these adjectives because I think all of it is shiny object mayhem. trying to codify what they've been operating under for some time anyways, which is the belief that these things are securities. And when it looks like a duck, quacks like a duck, I think you know the way that expression goes. Getting some sort of formality around that is probably a game changer in the space. So I bring it up because it's newsworthy. And, you know, and if we don't have the press talking about how the apocalypse is about to come because of a debt default that will bring down

the heavens and the earth, then, you know, I have to pull the news from somewhere. I am going to put a drop of bug in here now about Friday. It's a very special dividend cafe that I'm really looking forward to coming out. And so I'm mentioning it even a few days in advance that I'm basically doing a letter to high school graduates that I think is going to cover a lot of the important things you would want a young adult, a person entering the adult world to know economically, financially at this given point in time. So there's a fair amount of just generic timeless principles that'll be there, but I really do want to kind of tailor it to this moment in time. I hope you'll find it useful for

yourself and of course, younger people in your own life, kids, grandkids and whatnot. So that'll be the subject of Dividend Cafe on Friday, a letter to high school graduates. Thanks for listening. Thanks for reading. Thanks for watching DC Today. Thank you. suitable for all investors. All data and information referenced herein are from sources believed to be reliable. Any opinions, news, research, analyses, prices, or other information contained in this research is provided as general market commentary and does not constitute investment advice. The Bonser Group and Hightower shall not in any way be liable for claims and make no express or implied representations or warranties as to the accuracy or completeness of the data and other information, or for statements or errors contained in or omissions from the obtained data and information referenced herein. The data and information are provided as of the date referenced. Such data and

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