The DC Today - Monday, October 2, 2023

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

🗓️ 2 October 2023

⏱️ 24 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Today's Post - https://bahnsen.co/3F3CrAp

Ask David

“A couple weeks ago in your ‘What to Look for in an Advisor‘ Dividend Cafe, you pointed out that most advisors outsource portfolio management and asset allocation, and you expressed your disagreement with that trend. I agree with you, but I was wondering if you could unpack the specific reasons for why you disagree with outsourcing the investment process and why there is merit in direct portfolio management by advisors.” ~ Nathan

I really don’t feel strongly that most advisors should be managing capital directly, and in fact, for a significant amount of advisors I have met, considering their work ethic and intellectual capacity, I am glad they don’t. But I do feel that TBG should because we consider it our calling, part of our authentic skill set, and a huge part of our value proposition. What I believe is more universal, though, is that all advisors should have some baseline competence in capital markets, even if they do not practice security selection or portfolio management directly. And that they should be accountable for who they outsource to and not use third-party partners as mitigation of their own decision-making.

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

Transcript

Click on a timestamp to play from that location

0:00.0	Welcome to the DC Today, your daily market synopsis of the Dividing Cafe, brought to you every Monday through Thursday to bring you up-to-date information and perspective on financial markets.
0:14.7	Well, hello and welcome to the special Monday edition of the DC Today. We are officially into the fourth quarter for a while today.
0:22.3	It just felt like things were picking right back up where they left off in the third quarter.
0:26.7	What's kind of interesting is the third quarter, it wasn't as bad as it sort of feels because
0:33.5	September was pretty bad for broad market results, but we forget that July had actually been
0:39.3	up quite a bit and August was down a little. So it definitely got a lot worse for some of
0:45.3	the junkier stuff. Energy did real well in the quarter and there were a few other things that
0:50.3	it hung in there in the financial side. For clients, I'm going to do
0:54.9	a video in the normal weekly bulletin that will come out Wednesday, summarizing our specific
1:00.7	activity, going through actual positions and portfolios and things. But just at a broader
1:06.6	level, I think everyone knows, it ended up being a very challenging month for risk assets. But again,
1:13.4	the real story isn't on the stock market side. And I say that partially because I just expect that
1:19.9	stock market investors understand that type of volatility is extremely common. What's rare is when it
1:24.6	doesn't happen. But the bond side just got walloped. And so when you
1:29.5	have a kind of 60-40 type portfolio and the 40 side is not offsetting the 60 side, it tends to
1:36.2	exacerbate the pain. That was largely the story of 2022. Now, of course, yields going from 1 to five has a lot more pain than yields going from
1:47.5	four and a half to five, or four to four and a half or what have you.
1:52.3	So, yes, bonds were down in September as global bond yields have all moved to the upside,
1:57.3	particularly in the longer end of the curve, which is what I'm about to talk about here
2:00.5	in a moment. But the math of it is very different because you just simply don't have the
2:06.3	same movement higher as a percentage in yields, which of course brings prices down inversely.
2:13.0	All right. So let me kind of get into it because I do want to talk about the shutdown that
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from The Dividend Cafe - The Bahnsen Group, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of The Dividend Cafe - The Bahnsen Group and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.