Daily Covid and Markets Podcast - Thursday June 11
The Dividend Cafe
The Dividend Cafe - The Bahnsen Group
4.9 • 572 Ratings
🗓️ 11 June 2020
⏱️ 15 minutes
🔗️ Recording | Apple Podcasts | RSS
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Summary
The market declined 1,800 points today behind a conflation of factors we will unpack below. Futures were pointing to down 200 at bed time last night, were down over 500 at 3:15am, and dropped more than 850 points from then until the market open. We opened down that much, and then throughout the day saw new intra-day lows hit, as the yield curve flattened and some of the recent high flyers sold off a great deal
Links mentioned in this episode: DividendCafe.com TheBahnsenGroup.com
Transcript
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| 0:00.0 | Welcome to the Dividend Cafe weekly market commentary focused on dividends in your portfolio and dividends in your understanding of economic life. |
| 0:12.5 | Hello, welcome to today's COVID and markets brought to you by the Dividend Cafe. |
| 0:18.3 | This is David Bonson. I'm the chief investment officer of the bonson group and we |
| 0:22.8 | uh had one of those days again today it's been a little while and i'm going to try to unpack it all |
| 0:27.5 | for you uh markets were down about 1,800 points on the dow um obviously it's a little different when |
| 0:34.6 | this market drop comes after such violent moves to the upside over the last |
| 0:39.4 | 10 days. The reality is the markets today got down to the level they had been literally 10 or 11 |
| 0:46.8 | days ago. So obviously, you know, we want to interpret it in context, but I do think it's |
| 0:53.3 | important to kind of understand what took place. I do have a chart at COVID-Omarkets.com of the intraday movement. |
| 1:00.4 | It was pretty much a straight line down throughout the day. And the VIX exploded higher up |
| 1:05.6 | about, let's see, was a 48 percent. The VIX got back above 40. So that's traders putting on fear, putting on defense and protection. |
| 1:15.0 | It's not as fundamentally driven. |
| 1:19.1 | And really there isn't a particular headline. |
| 1:22.2 | I think it's a conflation of headlines. |
| 1:24.6 | My belief, and I've said this so many times, I just can't stop saying it. The |
| 1:29.4 | markets don't need a reason to drop, but 1800 points is obviously pretty significant. And I believe |
| 1:36.3 | that you have today both the kind of consolidation event that many have been waiting for, |
| 1:43.2 | just based on how much markets have moved |
| 1:46.1 | combined with a pretty heavy repetition of media headlines around a so-called second wave |
| 1:54.7 | and I'm going to talk about that here in a second. So you kind of already were overbought, |
| 2:00.2 | technically speaking. You have very skittish investors that had all kind of already were overbought, technically speaking. |
| 2:01.6 | You have very skittish investors that had all kind of poured in at the wrong time and into the wrong things, by the way. |
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