The DC Today - Tuesday, December 19, 2023
The Dividend Cafe
The Dividend Cafe - The Bahnsen Group
4.9 • 572 Ratings
🗓️ 19 December 2023
⏱️ 9 minutes
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Summary
Today's Post - https://bahnsen.co/47VBffb
Today saw risk assets rally yet again with the Dow closing at another all-time high.
It is interesting to see health care as the sector holding the defensives and lower beta names down. Consumer Staples and Real Estate have broken out a bit and Utilities have at least awakened, but Health Care has been the laggard.
The Bank of Japan extended its policy of negative interest rates (it has been seven years now, for those counting), though most believe they will hike the policy rate up to 0% in 2024. The Yen remains quite weak against the dollar.
Oil is down $20 from where it was in September (note, that was before the Hamas attack on Israel on October 7). The VIX is at $12.50, pretty close to the lowest it has been in five years, Credit spreads have tightened by 60 basis points just in the investment grade side, with high yield spreads tightening a full percentage point (and that is basically since Halloween). It would be hard to make up a series of data points that reflect a more favorable sentiment for risk assets than this.
Links mentioned in this episode: TheDCToday.com DividendCafe.com TheBahnsenGroup.com
Transcript
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| 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. |
| 0:13.8 | Well, hello and welcome to the Tuesday edition of the DC Today. I am very happy to be with you. It's going to be kind of a short one today. |
| 0:22.1 | Not a whole lot of major things to go through, but I want to hit the high points. It was another |
| 0:27.8 | rally day in the market. For those of you, by the way, watching on the video, I am recording |
| 0:33.3 | in my office in New York City instead of the studio, just simply because we're dealing with a few |
| 0:39.6 | technical things. And so I am sitting at my desk. I have all of the market action right in front |
| 0:45.6 | of me. And these rally days are just quite interesting because at this point, you do start to kind of |
| 0:51.6 | wonder who some of the buyers are at this level. |
| 0:55.6 | But the market opened pretty flatish, was up a little bit, and then it just kind of worked |
| 1:00.2 | its way higher throughout the morning and then kind of stayed flat for most of the second |
| 1:06.6 | half of the trading day. |
| 1:08.3 | And then it closed at a high on the day. |
| 1:10.2 | The Dow up 252 points, which was 0.68%. |
| 1:15.6 | And that also represented a new all-time high for the Dow. |
| 1:19.9 | So the Dow closing at 37,558 points, which is just rather remarkable. By the way, the S&P and NASDAQ are not to an all-time high, |
| 1:34.6 | but are not that far away themselves. So getting closer every day. The S&P was up 59 basis |
| 1:43.4 | points. The NASDAQ up 66 basis points. We've had a couple of |
| 1:46.9 | those days lately. They don't happen a lot. We had one last week where all three of the market |
| 1:51.3 | indices were up in almost perfect tandem with one another. They are so compositionally different |
| 1:57.2 | from one another that it's very rare and it's rare for good reason the methodology |
| 2:01.6 | how they're computed and what it is that is being computed are all very different so when they |
| 2:07.1 | really land on what is almost the same place on a day it just speaks to the kind of broad market |
... |
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