The Dividend Cafe Tuesday - August 27, 2024
The Dividend Cafe
The Dividend Cafe - The Bahnsen Group
4.9 • 572 Ratings
🗓️ 27 August 2024
⏱️ 7 minutes
🧾️ Download transcript
Summary
Market Update and Debt Concerns - August 27
In this episode of Dividend Cafe, Brian Szytel discusses the current state of the markets on a particularly quiet day. He covers key economic events to watch for, such as the upcoming PCE and nonfarm payrolls reports. The episode details the performance of major indexes, the state of the bond market, and the inversion of the yield curve. Brian also addresses concerns related to U.S. debt, the strong demand for two-year treasury notes, and the interconnected nature of global debt markets. Additionally, he explains the differences between securities-based loans and margin loans, highlighting their respective advantages and risks. Listeners are encouraged to reach out with questions and look forward to more insights in the next episode.
00:00 Introduction and Market Overview
00:59 Economic Indicators and Treasury Demand
01:19 Debt Concerns and Market Dynamics
02:43 Securities-Based Loans vs. Margin Loans
04:32 Conclusion and Final Thoughts
Links mentioned in this episode: DividendCafe.com TheBahnsenGroup.com
Transcript
Click on a timestamp to play from that location
| 0:00.0 | Welcome to the Dividend Cafe weekly market commentary focused on dividends in your portfolio and dividends in your understanding of economic life. |
| 0:10.0 | Welcome the Dividend Cafe. This is Tuesday, August the 27th, and Brian Saitel with you here today in really a very quiet market day frankly across |
| 0:23.8 | the board. Not a lot of economic news. We've got PCE and the non-farm payrolls on Friday. |
| 0:30.7 | And in the meantime, there's a couple of smaller things and I'll go through those. But the |
| 0:34.8 | Dow ended up closing up almost 10 points. The S&P of the NASDAQ were up |
| 0:39.5 | 16 basis points and the 10-year yield dropped one basis point to 383. The VIX or the volatility index |
| 0:47.5 | is back in the 15s, meaning there's not a lot of volatility. Things are quiet. That's not |
| 0:53.2 | necessarily a bad thing for most |
| 0:54.9 | market participants. But that's your Tuesday. The bond market to the 210 curve, which we talk about |
| 1:00.7 | all the time, has been inverted now for two years. It is now just seven basis points inverted. |
| 1:06.6 | So we're getting almost back to a flat and non-inverted curve, but not quite there yet. |
| 1:12.4 | I had a comment in the written version about just debt, at least in the U.S., on the treasury side, |
| 1:18.3 | and there was a fairly large auction today, $69 billion of two-year notes that went off really quite well. |
| 1:23.1 | So the demand for treasuries is still very strong. |
| 1:25.9 | But with $9 trillion, that that's nine with a T trillion, |
| 1:29.6 | maturing in the next 12 months and with the U.S. running trillion dollar annual deficits for the |
| 1:35.8 | foreseeable future, regardless of whichever candidate gets into the office in November, is it a |
| 1:41.3 | cause for concern? Look, it's always a cause for concern. We don't want our |
| 1:44.4 | national GDP going from 100% to 200% debt-to-GDP ratio. That said, we already have a slowing |
| 1:51.7 | China. That's already priced in. We had a $1.2 trillion dollar ballot sheet of treasuries in China. |
| 1:57.2 | Now it is now $800 billion because their real estate market is contracting significantly, |
| 2:01.9 | and they just have slower growth rates there. So there's less you on to recycle back into |
... |
Please login to see the full transcript.
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.
Copyright © Tapesearch 2026.