Jul 15, 2024
Derek Moore and Jay Pestrichelli are back together to discuss what happens after the Fed makes its first rate cut historically in markets. Plus, what if everyone is wrong about rate cuts? Then, they look at the historical spread between inflation and the Fed Funds rate plus how would investors take the other side of rate cuts? Finally, they discuss the idea of this being the 1990s all over again with AI as a technological revolution like the internet boom?
Earnings season is in full bloom
Fed Funds rate vs the YoY CPI Inflation comparison
Why historically Fed Funds does not have to equal annual inflation
What is the Fed afraid of?
Nasdaq Composite returns after major releases of new technologies
Record call volume on the IWM ETF (Russell 2000)
Total return for markets 12 months post 1st rate cut going back to 1974
Implied interest rate based on fed funds futures
VIX and the market both go up?
Mentioned in this Episode
Podcast 1994-95 All Over Again in Markets? https://podcasts.apple.com/us/podcast/1994-95-all-over-again-in-markets/id1432836154?i=1000590865306
Derek Moore’s book Broken Pie Chart https://amzn.to/3S8ADNT
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
Contact Derek derek.moore@zegafinancial.com