Long Term Capital Memories

The Dividend Cafe

The Dividend Cafe - The Bahnsen Group

Business, Dividend Growth Investing, Macro Economics, Wealth Management, Estate Planning, Monetary Policy, Retirement Planning, Investing

4.9 • 572 Ratings

🗓️ 29 September 2023

⏱️ 21 minutes

🔗️ Recording | iTunes | RSS

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Summary

Today's Post - https://bahnsen.co/4598Q3a

I hope (and assume) that long-time and regular readers of Dividend Café know that I am a sucker for history. I think this is true of all history, going back thousands of years, covering many eras, geographies, nations, people, and events, but it is especially true of American history. 20th-century American history is not very old, but wow, is there ever a lot of material there.

What happened in 1906 or 1915 or 1933 that matters to us today is “history” now – but when it was happening, it was “future history.” It was also well before I was born. There are, though, events in my lifetime, even my adult lifetime, that represent future history, much like the events of the early 20th century I allude to above. Knowing that I lived through these more recent events, that I have my own particular context to add, that they were both personal and all at once cultural – it all makes my interest in “modern events” of my adult lifetime that will be “future-historical” intense and profound. If I write too often or too obsessively about such things, forgive me, but it isn’t going to stop. I believe living through history being made is almost as fun as studying the history that was long ago made. And all of it I count one of the great blessings of this life.

It deeply impacted my life and allows me to obnoxiously wax and wane nostalgically, but it also deeply impacts your portfolio, even today. For much of the last 25 years you might argue this event had the most significant market impact, period. I am not being hyperbolic.

And that event is the subject of this week’s Dividend Café. Let’s jump into a little modern history and a 25th anniversary you will benefit from understanding.

Links mentioned in this episode: TheDCToday.com DividendCafe.com TheBahnsenGroup.com

Transcript

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0:00.0	Welcome to the Dividing Cafe weekly market commentary focused on dividends in your portfolio and dividends in your understanding of economic life.
0:12.6	Well, hello and welcome to this week's Dividendin Cafe. I can promise you, this is the first time I've recorded a Dividend dividend cafe from Moscow, Idaho. But I am in Moscow for just a couple days where I have a few speaking engagements. I'm seeing some clients, have a meeting Saturday morning, and then I'll be back at the Newport Beach office all of next week. So in the meantime, I get to record this week's Dividendon Cafe from this beautiful town.
0:43.2	And I am really fond of this week's Dividy Cafe.
0:47.8	It's a weird thing for the author to say.
0:49.4	It's probably sounding different that I intended to because it's not an arrogant thing.
0:54.8	I do say this every now and then, so it doesn't like it, it never happens, but there's just
1:00.8	some that I really enjoy writing, and I enjoy writing all of them, but this week's was one.
1:07.2	I had a lot of fun writing.
1:08.5	It was, I think this is a very important message. I think that there's some fun history involved in it. I had a lot of fun writing. It was, I think this is a very important message. I think
1:11.7	that there's some fun history involved in it. I am a obsessively, uh, nostalgic person, and there's a
1:20.4	modern history in this week's dividend cafe, but I think it captures some of the most important
1:25.2	investment realities of the last 25 years and highlights
1:29.9	a very big fork in the road at which I think we find ourselves now. What is it I'm referring to?
1:35.6	Well, on this actual Friday that this dividend cafe is being released, we are literally at
1:42.2	September 29th, 2003, the exact 25-year anniversary
1:48.1	of a Federal Reserve rate cut that took place September 29th, 1998. You say, why in the world
1:57.2	is there an anniversary of a Fed rate cut? it really isn't about the rate cut it is
2:03.4	what was happening 25 years ago that um is going to be in the history books and i think it'll be
2:11.7	in college history books literal college history books i don't think it'll be in elementary
2:17.1	school history books and I don't think it'll be in elementary school history books.
2:19.2	And it's already absolutely required understanding and reading in financial markets history.
2:27.6	And what I'm referring to is the implosion of a hedge fund in September 1998 called long-term capital management.
	...

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