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Broken Pie Chart


Jun 11, 2023

Derek Moore and Mike Puck from ZEGA Financial discuss how unlike what all the “experts” thought, international stocks have done quite well, and Europe’s economy held up. They look back at how long US large cap has outperformed international developed country markets. Then they look at some sector flows and note the parabolic nature of the chart into the tech sector. Plus, they talk about US Equity Factors through very early June comparing growth, value, high beta, and low volatility performance. Finally, in a follow up to a previous episode’s debate about car prices, Derek reads some reader emails and reviews the BLS data showing markups at dealerships are way up!

 

Auto dealership markups go up big compared to the increase in cars themselves.

US Equity Factors through early June

High Beta vs Low Volatility names

How international developed markets have lagged US large cap for years.

Are there green shoots for developed international markets?

What areas are included in developed international?

Sector fund flows show tech gets a ton of new money flowing into it.

What sectors have fallen out of favor looking at sector fund flows?

Projections on some emerging economies share of middle class rising.

Reading some reader email comments on car prices

 

Mentioned in this Episode:

 

BLS info showing auto dealership markups go way up https://www.bls.gov/opub/mlr/2023/article/automotive-dealerships-markups.htm

 

Cheaper to Rent than Buy? | Beneish-M Score Near Market Highs? | Top 10 Market Cap Companies by Decade | VIX Level Makes Multiyear Low https://podcasts.apple.com/us/podcast/cheaper-to-rent-than-buy-beneish-m-score-near-market/id1432836154?i=1000615625441

 

 

WSJ article M-Score Messod D. Beneish Accounting-Fraud Indicator Signals Coming Economic Trouble https://www.wsj.com/articles/accounting-fraud-indicator-signals-coming-economic-trouble-506568a0?mod=article_inline

 

 

AI Driving Market Returns? | Size of Top 2 S&P 500 Stocks Now 15%? | Relative Performance of Tech vs S&P 500 Index at Extreme Levels https://podcasts.apple.com/us/podcast/ai-driving-market-returns-size-of-top-2-s-p-500/id1432836154?i=1000613885329

 

AI Is the New Crypto & Blockchain Post Nvidia Earnings | Reach for Long Duration Bonds | More Fed Rate Increases Coming? | 7% Treasury Bills?    https://podcasts.apple.com/us/podcast/ai-is-the-new-crypto-blockchain-post-nvidia-earnings/id1432836154?i=1000614778019

 

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

 

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

 

Derek Moore’s book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr

 

Contact Derek derek.moore@zegafinancial.com