Derek Moore is joined by Mike Puck to compare this selloff to others like 2020, 1998, 2015, 2000 and more. Then they talk about how the Trump administration is arriving at their tariff percentages. Later, they discus how the market didn’t price in the eventual announcement. How things like the VIX Index and the High Yield Bond spread Thursday weren’t high enough. Did the market miscalculate the tariff announcement?  What is the sentiment among advisors and investors from what we are hearing and are we at max panic yet plus the continued case for hedging. 

 

When do we reach capitulation?

The market is cheaper so will people step in and buy?

The problem analysts have in making forecasts given the tariff landscape

Explaining implied volatility vs historical volatility

Why was the VIX higher after the first bad day Thursday

Discussing how a VIX closes at 45 is significant

Remembering sentiment at different inflection points in the market like 2020, 2015 2000 etc

Markets are back to where they were in August when the Yen Carry trade unwound 

Why investors shouldn’t panic

The case for using hedged equity strategies

What does a bottom look like?

Market is much cheaper on a forward valuation basis

What are the economic risks?

Unemployment was fine and the economy was adding jobs so what’s the problem?

Atlanta Fed GDP Update

 

Mentioned in this Episode

 

 

Derek Moore’s book Broken Pie Chart https://amzn.to/3S8ADNT

 

Jay Pestrichelli’s book Buy and Hedge https://amzn.to/3jQYgMt

 

Derek’s book on public speaking Effortless Public Speaking https://amzn.to/3hL1Mag

 

Contact Derek derek.moore@zegainvestments.com