Wednesday - June 10, 2026
The Dividend Cafe
The Dividend Cafe - The Bahnsen Group
4.9 • 572 Ratings
🗓️ 10 June 2026
⏱️ 8 minutes
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Summary
From The Bahnsen Group’s West Palm Beach office on June 10, Brian Szytel recaps a broad market sell-off driven by a continued rotation out of overvalued tech/semiconductors and later by news the U.S. would resume strikes on Iran, after an initially encouraging CPI report helped markets rebound mid-morning. The Dow fell 953 points (1.87%) to session lows, with the S&P 500 down 1.6% and Nasdaq down 2%. Headline CPI for May was 0.5% (4.2% year over year), while core CPI was cooler at 0.2% (2.9% year over year), which he views as encouraging amid strong growth and employment. He notes oil rose but markets seem more desensitized as supply chains adapt. He also answers that splitting between a dividend growth portfolio and the S&P 500 is not a hedge due to high correlation; true hedging comes from asset allocation across stocks, bonds, alternatives, real assets, and cash.
00:00 Market Selloff Recap
01:26 CPI Surprise and Fed Focus
03:13 Middle East Risks and Oil
03:50 Oil Market Adapts
04:29 Ask TBG Portfolio Hedging
05:08 Real Hedging Asset Allocation
06:00 Wrap Up and Sign Off
Links mentioned in this episode: DividendCafe.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. |
| 0:12.2 | Welcome to Dividend Cafe. This is Brian Sightel, your host here this evening, Wednesday evening, that is, on June 10th from our West Palm Beach, Florida office here at the Bonson Group. |
| 0:22.8 | We had a pretty broad-based sell-off today, but there's more to the story than that. We actually |
| 0:27.0 | started off the day already lower. We were down. There's a continued rotation out of technology |
| 0:32.3 | names, particularly the semiconductors, which have really sold off rapidly here the last couple of days, not because |
| 0:38.6 | things are going poorly, like I've said before, but because they were just simply overvalued. |
| 0:42.9 | But that rotation was ongoing this morning. Then you had a CPI number, a new inflation number, |
| 0:47.6 | that came out mid-morning that was a little bit cooler than expected, and markets rebounded. |
| 0:53.2 | And he actually got all the way back to just |
| 0:54.8 | about break even before geopolitical news broke that the U.S. was going to resume strikes on Iran. And |
| 1:01.9 | then all bets were off. Markets moved firmly lower on the day. And the Dow closed down, |
| 1:07.1 | actually right at the session lows. So selling picked up a bit towards the close. The Dow closed down |
| 1:12.2 | 953 points. These days, what that means is 1.87%, not like the old days where it was a huge move. |
| 1:19.1 | Still a big move, but 1.87% in the stock market on the Dow. The S&P was down 1.6%. Nasdaq was down 2%. So that rotation out of tech continued through the rest of the day, but it just became much more broad-based, pretty much all sectors. So let's talk about this a little bit. Rotation is what it is. It's that valuation story that I've talked about. The CPI number, let's walk this through a little bit. So we got a headline number of 0.5 for the month of May. |
| 1:47.3 | So if you annualize that at 6%, obviously that would be bad. |
| 1:50.6 | But we knew energy was up because of the Iran deal. |
| 1:53.6 | And the year over year number technically, even with that May number, is 4.2%. |
| 1:58.1 | Also, not good. |
| 1:59.5 | But those things were actually expected. So, okay, part for the course. |
| 2:03.3 | If you take out food and energy and you look at core CPI, we got a 0.2% for the month of May and then a 2.9% |
| 2:10.7 | year over year. So core is really what the Fed pays attention to. They remove food and energy specifically |
| 2:15.9 | because they're super volatile and these things can come |
... |
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