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:

TheBahnsenGroup.com