The Dividend Cafe

Latest Episodes:

Tuesday - July 21, 2026 Jul 21, 2026

Show notes

Brian Szytel recaps a Tuesday market rebound led by momentum stocks and semiconductors, with the Dow up over 300 points, the S&P 500 up 0.9%, and the Nasdaq up 1.3%, while the 10-year yield rose to 4.63% and oil climbed to about $84 WTI and $91 Brent amid the Iran war, pressuring inflation expectations and rates. With no major economic data, he focuses on demand-pull inflation and the lagged relationship between money supply (M2) and CPI, noting M2 is up ~3.5% year-to-date and nearly 6% over 12 months, suggesting inflation could bias higher 12–18 months out despite a cooler June CPI. He discusses the Fed’s inflation-fighting rhetoric, an estimated high chance of a rate hike before year-end, and potential headwinds to risk assets from tighter policy and balance-sheet shrinkage. He also explains that point moves typically refer to the Dow for public discussion, while deeper market analysis relies on the broader S&P 500.

00:00 Market Bounce Recap

01:02 Rates and Oil Move

01:37 Money Supply and CPI

03:05 Fed Hike Risk Ahead

04:52 Dow vs S&P Explained

06:41 Wrap Up and Q&A

Links mentioned in this episode: DividendCafe.com

TheBahnsenGroup.com

Monday - July 20, 2026 Jul 20, 2026

Show notes

Today's Post - https://bahnsen.co/4yvcd4b

David Bahnsen reviews a modest down day for markets as Iran tensions and reported American casualties push oil above $80 (ending above $83), with the Dow down ~300, S&P -19 bps, Nasdaq -5 bps, and the 10-year yield at 4.59%; communication services and energy led while healthcare lagged. He cites IPO froth cooling, noting SpaceX below $120 versus a $135 IPO and far off highs. In politics, he highlights Maine’s Senate race likely featuring progressive Troy Jackson versus Susan Collins and notes Michigan Democrats consolidating behind Haley Stevens, outlining the difficult map for a Democratic Senate majority. Economically, he underscores the Supreme Court reversal of IEEPA tariffs lowering blended import tariffs from ~11% to ~6–6.5%, while flagging a record 105.8M outside the labor force, soft industrial production, rising import prices, and housing starts driven by multifamily. He previews next week’s Fed meeting under Chair Kevin Warsh, balance-sheet maturity shortening, midstream earnings (Kinder Morgan), and answers why shorting stocks is inherently leveraged and generally unsuitable for most investors.

00:00 Welcome and Setup

00:17 Iran Tensions and Oil

01:24 Market Wrap and Sectors

02:17 IPO Froth Check

03:13 Senate Races Outlook

05:39 Economy Data and Tariffs

07:43 Housing and Fed Preview

09:08 Energy Earnings and Gas

10:01 Ask TBG Short Selling

12:00 Wrap Up and Links

Links mentioned in this episode: DividendCafe.com

TheBahnsenGroup.com

Five Things I Worry About and Five Things I Don’t Jul 17, 2026

Show notes

Today's Post - https://bahnsen.co/4fhExhw

From the Newport Beach studio, David outlines five market concerns and five items he is not worried about. His worries are: extreme S&P 500 concentration (top 10 near 39% and semiconductors rising to ~20% weight), speculative retail behavior (surging ETF inflows, levered ETF growth, and elevated options/0DTE activity), a “right pocket vs left pocket” dynamic where hyperscaler AI spending transfers free cash flow to semiconductor/data-center suppliers, an S&P earnings narrative he sees as circular and priced to perfection with margin risks, and counterparty risk tied to OpenAI—especially the possibility of government “nationalizing” AI. Not worried: imminent AI job destruction (headcount rising at AI adopters), volatility, the politicized inflation narrative, near-term energy price swings, or “software is dead,” arguing AI creates winners and losers requiring due diligence; he closes noting long-term concern over government debt and preference for dividend growth.

00:00 Welcome and Setup

01:10 Market Concentration Risk

04:36 ETF and Options Frenzy

08:52 AI Capex Winners and Losers

10:46 S&P Earnings and Margins

13:25 OpenAI Counterparty Risk

16:43 AI Jobs Fears Debunked

19:15 Why Volatility Helps

20:17 Inflation Narrative Nuance

23:39 Energy Beyond ESG

25:26 Software Valuations Reset

27:03 Recap and Big Picture Close

Links mentioned in this episode: DividendCafe.com

TheBahnsenGroup.com

Thursday - July 16, 2026 Jul 16, 2026

Show notes

Brian Szytel hosts Dividend Cafe on Thursday, July 16, describing a down market day driven by rotation out of tech and semis, with the Nasdaq down 1.5% versus modest declines in the Dow and S&P, and equal-weighted S&P outperforming cap-weighted by over 160 bps. He highlights ongoing housing weakness: existing home sales at the lowest pace since 1995, affordability pressures with mortgage payments rising from about $1,700 to $3,100 since 2020, and record home equity (~$11T) contributing to illiquidity as most homeowners have rates below current levels. He addresses financials’ July strength, noting they signal economic health but appear fairly to slightly richly valued around 2x price-to-book. Economic data was mostly positive (retail sales +0.2%, Philly Fed 41 vs 13, claims 208 vs 218) while housing data disappointed (builder sentiment down, pending sales -5.6%).

00:00 Market Wrap and Rotation

00:47 Housing Market Stuck

01:23 Affordability and Equity

03:08 Financials Sector Question

04:36 Economic Data Rundown

05:12 Housing Data Misses

05:37 Closing Thoughts

Links mentioned in this episode: DividendCafe.com

TheBahnsenGroup.com

Wednesday - July 15, 2026 Jul 15, 2026

Show notes

On Wednesday, July 15, Brian Szytel reports modest market gains (Dow +150, S&P 500 +0.4%, Nasdaq +0.6%) amid a positive early Q2 earnings tone, though Middle East tensions temper sentiment and momentum tech (semis and software) has been pressured. He highlights notable strength in financials, citing rising lending, M&A, and capital markets activity, with investment banking up about 30%, capital markets up over 15%, and financial earnings up over 6%, viewing this as a forward-looking sign of economic confidence. The day’s key news was a second straight cooler-than-expected inflation report: PPI fell 0.3% vs flat expected and core rose 0.2% vs 0.4% expected, implying a favorable PCE read. He discusses potential market impacts if Strait of Hormuz disruption persisted (higher oil, inflation, rates; pressure on long-duration assets; benefits to U.S. production), while noting futures imply ~$75 oil in a year, and adds a strong Empire State manufacturing print (15.6 vs 8.4 expected).

00:00 Market Close Recap

00:23 Earnings Season Pulse

01:00 Financials Lead Strength

02:26 Cooler Inflation Data

03:40 Hormuz Risk Scenario

05:15 Futures Reality Check

05:28 Manufacturing Beat Wrap

05:57 Final Sign Off

Links mentioned in this episode: DividendCafe.com

TheBahnsenGroup.com

Tuesday - July 14, 2026 Jul 14, 2026

Show notes

Brian Szytel recaps a mixed but positive market day with the Dow up about 45 points, the S&P 500 up 0.4%, and the Nasdaq up just under 1%, helped by a broad financial-sector rally despite somewhat mixed large-bank earnings. Oil rose with increased Middle East tensions and volatility around the Strait of Hormuz. The main story was a better-than-expected CPI report: headline CPI fell 0.4% versus expectations for -0.1%, and core CPI was essentially flat (-0.02%) versus a forecast of +0.2%, bringing year-over-year core to 2.6% and pushing the 10-year yield down about 3 bps to 4.58%, with Fed futures repricing to lower odds of hikes. He notes one print isn’t a trend, highlights a stronger NFIB Small Business Optimism Index, and explains why deflation is worse than modest inflation, citing Japan’s long period of minimal growth.

00:00 Market Wrap and Earnings

00:45 Oil Jitters Middle East

01:01 CPI Surprise and Rates

02:39 Fed Talk and Futures

04:12 Small Business Optimism

04:26 Inflation Versus Deflation

05:35 Japanification Case Study

06:34 Wrap Up and Sign Off

Links mentioned in this episode: DividendCafe.com

TheBahnsenGroup.com

Monday - July 13, 2026 Jul 13, 2026

Show notes

Today's Post - https://bahnsen.co/4bF0WEu

The Monday Dividend Cafe recaps a volatile market day that resembled prior Iran-tension selloffs: oil surged nearly 10%, energy rose over 3%, tech fell over 2%, semiconductors dropped about 4.77%, the Nasdaq fell over 1.5%, the S&P 500 was down 80 bps, and the Dow slipped 138 points, while the 10-year yield rose 6 bps to 4.63%. The host discusses an apparent market leadership rotation (equal-weight beating cap-weight, small cap beating large cap, value beating growth) alongside the paradox of momentum being the top year-to-date factor because “momentum” has shifted to new leaders. He adds new “More to Chew On” links to the written Dividend Cafe and previews a Friday piece on five market concerns and five non-concerns. Key news includes the reported death of Senator Lindsey Graham and escalating US-Iran strikes with renewed Strait of Hormuz closure and US blockade claims. He notes June existing home sales fell 2.4%, contrasts mortgage rates and home prices versus 10 years ago, summarizes new Fed task forces, and highlights differing views on rate hikes with futures implying a 90% chance of at least one hike by year-end.

00:00 Market Open Recap

01:11 New Links Section

02:20 Friday Feedback

02:52 Rotation Versus Momentum

05:45 Rates Oil And Sectors

06:09 IPO Mania Warning

07:35 Headlines And Iran

09:00 Housing And Fed Outlook

10:57 Wrap Up And Friday Preview

Links mentioned in this episode: DividendCafe.com

TheBahnsenGroup.com

Good Enough for a 19-Year-Old? Jul 10, 2026

Show notes

Today's Post - https://bahnsen.co/4yeyV0d

David Bahnsen uses the idea of asking 19-year-olds what’s popular to critique a growing tendency among investors to allocate capital based on youth trends and “shiny objects” rather than fundamentals. He distinguishes learning about generational preferences from turning those preferences into portfolio decisions, arguing this misreads Peter Lynch’s “invest in what you know,” which requires deeper research beyond familiarity. Bahnsen cites examples where popularity failed as an investment signal—Forever 21’s boom and bankruptcy, Gap’s long-term stock decline, Snapchat’s extreme volatility despite rising users, and Krispy Kreme’s post-IPO collapse—showing that what seems popular is often already priced in. He warns against adopting crypto, Bitcoin, AI-adjacent trades, IPO mania, or meme-stock themes merely to match what younger clients want, emphasizing fiduciary duty, cash flow, intrinsic value, and the idea that fads can be a counter-signal.

00:00 Welcome and Setup

02:01 Why Youth Trends Matter

02:39 Tech Habits vs Investing

06:41 Peter Lynch Misread

09:28 Retail Fads Fail Fast

12:15 Snapchat Popularity Trap

13:34 Krispy Kreme Lesson

16:02 Crypto and AI Pressure

19:33 Shiny Object Investing

21:37 Fiduciary Depth and Close

Links mentioned in this episode: DividendCafe.com

TheBahnsenGroup.com

Thursday - July 9, 2026 Jul 09, 2026

Show notes

In this midweek Dividend Cafe (Thursday, July 9), Brian Szytel notes a mixed recovery in markets amid renewed volatility tied to Middle East tensions, while oil prices pulled back slightly and interest rates were flat to slightly lower. Economic updates included initial jobless claims coming in a bit better than expected, suggesting steady, healthy employment, and weaker existing home sales (down 3.4% to 4.09 million), reflecting affordability pressures from high rates and a stuck housing market, with modest price declines seen as healthy clearing. He reviews June FOMC minutes showing a divided committee, some discussion of potential hikes, continued attention to AI demand, geopolitical risks, tariffs as a GDP drag, and higher inflation projections for 2026–2027, with expectations split between hikes and no change. He also explains that business cycles persist due to real-economy lags in capital, credit, inventories, labor, and policy transmission.

00:00 Market Recap Volatility

00:46 Jobs And Housing Data

01:32 Housing Affordability Reset

02:37 Fed Minutes Takeaways

03:54 Dot Plot And Guidance

05:05 Why Business Cycles Persist

06:53 Wrap Up And Q&A

Links mentioned in this episode: DividendCafe.com

TheBahnsenGroup.com

Wednesday - July 8, 2026 Jul 08, 2026

Show notes

Brian Szytel hosts Dividend Cafe on Wednesday, July 8, discussing increased volatility tied to escalating US-Iran tensions after Iran struck oil tankers and the US retaliated against multiple military targets, with oil up about 5% and markets modestly lower but without a clear flight to safety (dollar slightly up, yields up ~3 bps, gold and silver down). He notes rotation dynamics and highlights sector breadth: pharma, household products, and utilities show 100% of stocks above their 50-day moving averages, versus tech, semis, and autos below 40%. Economically, wholesale inventories rose 0.1% versus 0.3% expected, while wholesale sales jumped 3.4%, pushing the inventory-to-sales ratio to its lowest since 2012. He addresses Scott Bessent’s tariff “success” claim, citing tariff revenues annualizing to about $290B versus $500B–$1T estimates, some net-positive trade deals (Japan, South Korea), little change in the trade deficit, slight GDP drag on consumers, and offsets from fiscal measures and AI-related CapEx expensing.

00:00 Market Volatility Update

00:36 Oil Moves and Safe Havens

01:11 Sector Rotation Signals

01:41 Wholesale Data Snapshot

02:10 Tariffs Success Question

03:09 Trade Deals and Deficit

04:04 Wrap Up and Tomorrow

Links mentioned in this episode: DividendCafe.com

TheBahnsenGroup.com