The Dividend Cafe Thursday - January 22, 2026
Jan 22, 2026
The market is buzzing with a recent rally across major indices. Small caps are shining bright, boasting a stellar 14-session winning streak. Meanwhile, bond yields remain stable, hinting at potential easing ahead. A critical look at gold and silver investments suggests focusing on fundamentals rather than market frenzy. A discussion on index funds raises interesting points about their role in market bubbles. Finally, economic updates reveal promising trends in jobless claims and GDP revisions, keeping listeners informed and engaged.
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Small Caps' Strong Catch-Up Rally
- Small caps have begun a sustained outperformance streak after long underperformance.
- They have outperformed the S&P for 14 consecutive sessions and are up nearly 6% year-to-date versus ~1% for larger caps.
Bond Market Is Sending Few Strong Signals
- The bond market shows limited directional signals despite equity moves.
- Ten-year yields sit around 4.25% while the yield curve is steeper year-to-date but has technically flattened slightly this year.
Prioritize Cash Flows Over Precious-Metal Hype
- Avoid treating recent parabolic gold and silver charts as a predictive guide.
- Calculate internal rates of return and focus on fundamentals and cash flows instead.