Market Correction Turmoil | Don’t Panic | VIX Spikes | 3 Fed Cuts? | Atlanta Fed GDP Now Collapses | Tariffs | Listener Emails
By Derek Moore
Show Summary:
Derek Moore is back together with Jay Pestrichelli this week to react to the market turmoil. What is going on and is this just a revaluation or something worse? Plus, now the Fed Funds’ futures indicate 3 rate cuts. Looking at the Mag 7 selloff compared to the rest of the market. Unemployment was fine so what’s the big deal? Later, looking at whether the options market via the implied volatility readings is pricing in more, less, or just right actual historical volatility. They even take a listener question and read a sad email from an avid listener who is boycotting the show. We hope they come back but this week we dig into everything in markets and provide some historical context and whether there are bullish signs.
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Topics Include:- Peter Lynch on corrections from 1994
- Comparing this drawdown to all the others since 2009
- Why investors shouldn’t panic
- Reminding everyone why it’s good to be hedged to ease your mind around corrections
- What are options markets saying via the implied volatility levels and the Vix Index
- Comparing 10 Day implied volatility on SPY options vs 90 Day implied volatility
- The S&P 500 Index forward PE ration vs earnings estimates
- Nvidia bear market territory despite earnings beats and falling Forward PE ratio
- Washington DC new unemployment claims in perspective
- The unemployment rate of 4.1 percent threads the needle
- 3 Fed Rate cuts now priced in 2025?
- Value of hedging your portfolio
- High yield has held up ok so far compared to the equity market
- Earnings estimates are still higher, but will analysts cut them due to tariffs?
- Uncertainty of Tariffs
- Why the Atlanta Fed GDP Nowcast went negative
- Balance of trade on exports minus imports due to tariffs gets really wide
- Trade deficit expands
Peter Lynch 1994 video talking about corrections in markets frequency
Jay Pestrichelli’s book Buy and Hedge
Derek’s new book on public speaking Effortless Public Speaking
Derek Moore’s book Broken Pie Chart
Contact Derek
Last Week’s Episode:
Investors Get Bearish |Nvidia Earnings | Implied Volatility Broadcom | Effective Tariff Increase | Mag 7 Correction
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