The Dividend Cafe Wednesday - August 13 , 2025
Aug 13, 2025
This episode dives into the latest market insights with a remarkable six-to-one advance-decline ratio. The discussion includes Treasury Secretary Bessant's predictions about potential Fed rate cuts. Small-cap stocks show signs of life despite past struggles, while the housing market experiences a resurgence amid affordability concerns. There’s also a focus on the challenges of managing assets for international clients and a preview of upcoming economic indicators like the Producer Price Index and retail sales.
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Broad Market Follow-Through
- Market breadth showed strong follow-through with a six-to-one advance-decline ratio, signaling broad participation in the rally.
- Brian sees the path of least resistance as upward in the near term absent major data until September employment.
Fed Comments And Candidate Search
- Treasury Secretary Bessant suggested the Fed consider a 50bp cut and the administration is casting a wide net for Fed candidates.
- Brian expects a search to target dovish possibilities and sees a replacement likely into next year.
Small Caps Showing Life
- Small-cap stocks showed follow-through after being under-owned and lagging in past rallies.
- Brian highlights selectivity is crucial because roughly 40% of the Russell 2000 lacks earnings.