The Dividend Cafe Monday - November 17, 2025
Nov 17, 2025
Market volatility is on the rise as the DOW dropped significantly while defensive stocks gain traction. The podcast explores the dips in speculative sectors like cryptocurrencies and quantum computing. Tariffs are scrutinized for their effects on supply chains, and there's talk of easing capital requirements for banks to stimulate lending. Surprisingly strong manufacturing data suggests a potential recovery. The discussion also includes thoughts on how AI could impact macroeconomic conditions and investment strategies focused on fundamental analysis.
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Broad Sell-Off Without Panic
- Markets saw a broad sell-off with the Dow down 557 points and NASDAQ/S&P down ~0.8–0.9%.
- Volatility rose to the low-23 VIX level but technicals like 50% of S&P above the 200-day MA are not panic signals.
Shiny Objects Have Slid Hard
- High‑valuation areas like rare earths, quantum computing, and crypto have plunged roughly 30–50%.
- Many names were priced on extreme multiples or unmeasurable metrics, making them risky for capital preservation.
Tilt Toward Defensive Stocks
- Favor value and defensive sectors when speculative areas retract.
- Steer clear of ultra‑high valuation names for client capital according to The Bahnsen Group's comfort levels.