The Dividend Cafe Wednesday - May 22, 2024
The Dividend Cafe
The Dividend Cafe - The Bahnsen Group
4.9 • 572 Ratings
🗓️ 22 May 2024
⏱️ 5 minutes
🧾️ Download transcript
Summary
This episode of Dividend Cafe offers a commentary on the recent market downturn, noting a 201 point drop in the Dow and a slight rise in volatility. The Federal Reserve's May meeting minutes are discussed, revealing some disappointment in inflation data but maintaining a medium-term 2 percent inflation target. The episode also covers lower than expected April existing home sales, likely due to tight housing inventory and higher rates, yet notes a 5.7 percent year-over-year price increase. UK inflation rose slightly more than expected to 2.3%, attributed to weaker economic fundamentals compared to the US. China's potential increase in tariffs on large autos from the US and Europe is mentioned, seen as a tit-for-tat move against the Biden administration's tariff raises. Additionally, the episode previews economic indicators to be released the following day, including jobless claims and PMI numbers. The Bonson Group's role as investment professionals and the disclaimer regarding investment risks and advice conclude the commentary.
00:00 Introduction to Dividend Cafe 00:18 Market Movements and Federal Reserve Insights 01:16 Housing Market Dynamics 02:10 Global Economic Indicators: UK Inflation and China's Tariff Strategy 02:48 Looking Ahead: Economic Calendar and Closing Thoughts 03:10 Disclaimer and Professional Advice Notice
Links mentioned in this episode: DividendCafe.com TheBahnsenGroup.com
Transcript
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| 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. |
| 0:13.7 | Welcome to Dividend Cafe. It is Wednesday, May 22nd. And we had a down day in markets today. And although we did close off of the lows, |
| 0:22.5 | we still notched about a 201 point drop in the Dow. A little rise in volatility. So a bit of a down |
| 0:29.0 | day. And really, it was minutes out today from the May meeting from the Federal Reserve that I |
| 0:34.4 | didn't particularly read as overly hawkish. They were sort of middle of the row, but they did |
| 0:38.8 | point to being disappointed. Most of the Fed governors were disappointed in the inflation data. |
| 0:43.7 | There were a couple of them that cited a willingness to actually raise rates, although Powell has |
| 0:49.5 | been very outspoken about, you know, there'd be a very high bar for that. So I don't think that |
| 0:53.6 | is likely at all. |
| 0:54.9 | The Fed futures for September changed a little bit lower, but not much, not even enough to |
| 0:59.7 | really mention. So I suppose that was the bad news that caused markets to go lower on the day. |
| 1:05.1 | The takeaway, by the way, from the minutes was still very much that a 2% target will be achieved |
| 1:10.2 | over the medium term pretty much across the board. |
| 1:13.2 | So there you have it. |
| 1:14.5 | April existing home sales on the day were lower than expected. |
| 1:18.1 | We were down 1.9% month over month. |
| 1:20.7 | Again, a very tight supply and inventory market and housing. |
| 1:24.2 | It's still basically stuck, as I've described it. |
| 1:26.9 | Housing is stuck with higher rates, |
| 1:28.4 | and that's where we are. With prices, though, we still have seen some gains. We've got year-over-year prices |
| 1:33.0 | up 5.7% year-over-year, which technically is the 10th consecutive month here. So prices have hung in |
| 1:39.8 | their fine, and the average median or the median price across the country is about $407,000. |
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