Welcome to the Dividing Cafe, weekly market commentary focused on dividends in your portfolio

and dividends in your understanding of economic life. Well, hello and welcome to the Monday

edition of Dividend Cafe. You may notice I'm not in my normal setting here. I'm sitting in the

Admiral's Club at JFK where I had to run to the airport from the office,

hence the change in outfit and the expedient nature of today's div cafe because my flight tonight got canceled.

I was able to get our earlier one, and I'm headed back from the three-degree tundra of Manhattan to the 75-degree

tundra of California, then off to Arizona for a big client event, Tuesday night, be in our

Phoenix office Wednesday, back in California, Thursday, Friday. So the moving around is what it is,

but I did not want to leave you without the Monday Dividing Cafe. It was an adventurous

day and even weekend. We're now, of course, done through the month of January. Some quick highlights

around all that. It was very much a month of rotation. And one month does not represent the entirety of 2026, but this was, of course,

a big theme of ours for the year. What it does in January has nothing to do with what

we'll end up doing for the whole year. But you just saw a significant rotation and really across

the board, equal weight S&P up 3.3% where the cap weighted S&P only up 1.4.

The small cap index, Russell 2000, up 5.3 with the S&P only up 1.4,

value up 4.4, large cap value, with large cap growth, down 1.5.

So in all of those major metrics that kind of size up this rotation theme,

from small to large, from value to growth, from even weight to cap weight, the rotation was really profound.

And across the sectors of it all as well, energy, materials, consumer staples, top performing sectors,

the bottom of the barrel was technology

and communication services. The NASDAQ, speaking of which, by the way, has not made a new high

since October and 40% of its constituents are treating below their 200-day moving average.

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