Apr 21, 2024
Derek Moore and Mike Puck from ZEGA Financial discuss Friday’s selloff. It’s official, we are in a 5% market correction. Looking back at other corrections greater than 5% from the highs. Mortgage rates move back up while 10-year treasury yields surge. Commodities are higher on the year but still down from all-time highs. Gold makes another all time high. Later they look at the value vs growth performance including the magnificent 7 stocks compared to the rest of the market. Finally, stocks and bonds are more correlated than people realize in higher inflation regimes.
Futures selloff overnight and why we don’t need 24-hour trading in the stock market
Market corrections of over 5%
30-year mortgage rates are spiking again
Looking at the high yield bond market with spreads widening
10-year treasury bonds on the way to 5%?
Gold makes another all-time high
Stock and bond correlations historical look
Will bonds still be a good hedge against stocks?
Value vs Growth check in
Magnificent 7 vs the rest of the S&P 500 Index
Synthetic option positions
Listener question about knowing what positions make up what strategies
Duration of High Yield Bond Index vs time to maturity and Yield to Worst
Container shipping rates
Check in on where commodity prices are
Mentioned in this Episode
Podcast: Explaining How and Why Bonds Make or Lose Money https://open.spotify.com/episode/3AUT2DVbHfEQyJglpe70nP?si=wIFug8IfR1-sb_bX03qNHA
Previous Week’s Podcast:
Market Selloff | No Rate Cuts? | Bitcoin vs Gold | CPI Inflation Sticky | VIX Curve https://podcasts.apple.com/us/podcast/market-selloff-no-rate-cuts-bitcoin-vs-gold-cpi-inflation/id1432836154?i=1000652413865
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://amzn.to/3S8ADNT
Contact Derek derek.moore@zegafinancial.com