The Dividend Cafe Wednesday - January 14, 2026
Jan 14, 2026
The podcast dives into the recent market decline and a notable shift from growth to value stocks. Delayed economic indicators are affecting perceptions of retail and inflation. Despite mixed earnings from major banks, sectors like industrials and energy are thriving. A provocative discussion on the potential of the US dollar losing its reserve currency status highlights the absence of a viable alternative. Brian also shares insights on interest rates and important upcoming Supreme Court rulings that could impact tariffs.
AI Snips
Chapters
Transcript
Episode notes
Rotation Toward Value And Cyclicals
- Markets rotated from growth to value as investors chased cheaper, cyclical sectors like financials and industrials.
- Breadth widened early in 2026 as small caps and value names began outperforming after multi-year lagging.
Delayed Data Blunts Market Signals
- Several economic figures were released late due to the government shutdown, muting their market impact.
- Retail sales and producer prices were stronger or cooler than expected but referred to older months, limiting immediate signal value.
Earnings Fuel Rotation Not Clear Direction
- Big money-center banks reported good results but many stocks had run up significantly in 2025.
- Earnings triggered rotation rather than clear directional moves as richly risen names pulled back and laggards caught up.