Welcome to the Dividend Cafe weekly market commentary focused on dividends in your portfolio and dividends in your understanding of economic life.

Welcome to Dividend Cafe. This is Wednesday, August the 7th, and Brian Saitel with you here today on a down day in markets after yesterday's move higher.

So we failed to continue on with so momentum, although yesterday's advanced decline ratio at 2.6 to 1 didn't have a whole lot of conviction to it, frankly, that we were out of the weeds completely.

And the VIX closed today at 28. So high 20s on the volatility index means that we still have some more ups and downs here as we work through things in markets. The Dow closed down 234 points on the day. The S&P was down about 0.77%. The NASDAQ closed a little lower than 1% on the day. The tenure closed at 396, which was up five basis points

on the day. Look, as an equity investor, you're taking on a higher level of volatility and risk

for the higher rate of return that you're getting, call it double digits over time.

And so some of this stuff is really part for the course. On average, the market drawdown

over 50 years has been about 15% a year, part for the course. On average, the market drawdown over 50 years has

been about 15% a year, about 14.7. So that's on average every year. We're supposed to have

this mid-year drawdown of something around there. We're supposed to have around 5% pullbacks

about three different times a year. So I think some of these years, we've gotten a little

desensitized to some of this, but this is actually normal. Monday's move put us down about 8% on the

S&P. We're down about 14% at the low on Monday on the NASDAQ. So in line, and frankly, I assume more

to come. And as a dividend investor, I'm not sure that's necessarily a terrible thing

because there's dividends being earned. And as cash flows get credited to the account to get

reinvested at lower share prices and you get a positive compounding effect over time,

the bond market move has actually been probably more dramatic, at least in my view,

the rally from on both twos and tens to 360s,

367 or so, back up to now 4%. It's quite a round trip. The yield curve, by the way,

it closed today, inverted by the least at just three basis points, frankly, than I can

remember at this point over a year at least since it's been basically

completely flat. The difference between two year, five year, seven year, ten year, and 30 year treasuries

...