The DC Today - Tuesday, November 15, 2022

The Dividend Cafe

The Dividend Cafe - The Bahnsen Group

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

4.9 • 572 Ratings

🗓️ 15 November 2022

⏱️ 16 minutes

🔗️ Recording | iTunes | RSS

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Summary

MARKET ACTION Dow: Up +56 points (+0.17%) S&P: +0.87% Nasdaq: 1.45% 10-Year Treasury Yield: 3.76% (- 10 basis points) Top-performing sector: Communication Services (+1.78%) Bottom-performing sector: Materials (-0.11%) WTI Crude Oil: $86.86/barrel (+1.15%) Key Economic Point of the Day:

The Producer Price Index only rose +0.2% in October, half of the +0.4% monthly increase that had been anticipated. And much of that lower figure came from a decline of -0.1% in services, the first decline in wholesale services costs in two years

ASK DAVID** “Is purchasing gold and/or silver a good investment?”

~ Cindy W.

My view has been for quite some time that it is a non-productive investment. What I mean by then is that it does not generate any cash flow and does not have any internal earnings stream, so the value becomes a matter of speculation or supply/demand around use. But gold is not really owned much for industrial use, and even its cosmetic use is somewhat limited, so those who own gold or silver for investment purposes must defend the notion of gold being a sort of inflation hedge or currency proxy. And maybe it will be that someday, but that day is not the last 42 years, where gold is down by -50% relative to inflation – a stunning and shocking fact to all who hear it. I will also point out that the most common thing I have been told over the years is that gold gives us a hedge or substitute against crazy unstable monetary policy. Well, trillions of printed QE dollars since 2012 later, gold is lower than it was a decade ago. This should have been the golden age for gold; instead, it has many wondering what exactly the thesis is.

At the end of the day, gold can go up a lot, and it can go down a lot, but it rarely does what people seem to want it to do when they want it to do it.

Links mentioned in this episode: 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.
0:15.3	Well, hello and welcome to the DC Today Tuesday edition. It is November the 15th. And we had a pretty exciting day in the market, although you wouldn't necessarily know from the closing spot. Speaking of the Dow, after the PPI number came out this morning, which I'm going to talk about in a moment. The Dow futures got up 400 points.
0:38.8	The Dow on the day traded in a range from top to bottom of 700 points.
0:45.3	But it closed up 56.
0:47.8	Now, that's 273 points off of the low on the day.
0:52.1	So it had a big rally off of wherever its bottom point was near the kind of middle of the day
0:57.8	a little bit into the second half.
0:59.8	But it was also 394 points off of the high of the day.
1:05.2	So a 700 point range in the Dow just to sort of settle with 0.17% upside on the day.
1:12.7	But there were a few key Dow holdings that were holding it down where because you saw in
1:20.0	the S&P almost a 1% gain, 0.87% and the NASDAQ was up almost 1.5%. The big thing rallying some of the rate sensitive stocks,
1:31.4	REITs were the second best performing sector today. These, you know, kind of longer duration type
1:37.1	growth stocks have continued their bid since last Thursday. As the NASDAQ was up 1.45, the
1:43.9	communication services sector was the best performing
1:46.4	at 178. And the big thing is the bond market. The 10 year dropped another 10 basis points today as
1:53.8	the bond rally continues. The tenure is now all the way down to 3.76% yield.
2:01.8	The worst performing sector of the day was materials,
2:04.9	and it was only down 11 basis points.
2:07.5	So really barely a negative territory.
2:10.3	Crude oil closed at $87, just a few cents below $87,
2:15.4	up over 1% on the day.
2:19.9	So a good day for a bunch of the market, a kind of average day with a lot of volatility
	...

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