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

Welcome to Dividendon Cafe. It is Wednesday, July the 17th.

In what was another mixed day today actually in markets the Dow ended up

250 plus points 253 points on the day the S&P was down 1.4 almost 1.4% and the

NASDAQ was down 2.77% so a big sell-off in technology the point drop actually on the NASDAQ was over 500 points lower.

So double that of the Dow positive was the NASDAQ lower. So quite a disparity in returns.

Part of that was tariff talk, both from Trump, but also Biden on imports from China, particularly in the

semiconductor space,

which is that technology sleeve,

which is more NASDAQ heavy.

And so that's what's all a large part of the selloff today

in that part of the market.

But it's another relative outperformance technically

for the equal weighted S&P versus the cap weighted.

It's over 100 basis points on the day. That's the second day in a

row. And you've got things like value stocks, cyclicals, small caps, all outperforming. And I wrote about

this a little bit in what's on Brian's mind. But there are times, in fact, most times when rate cycles

go the other way, meaning they start

cutting interest rates, things like small caps actually underperform by an average of about

7%. But a lot of that is because those time periods tend to be associated with recessionary

periods. And the times that aren't recessionary, meaning the Fed cuts rates and we're not a negative

growth trajectory.

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