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Broken Pie Chart


Feb 12, 2023

Derek Moore is back with ZEGA Financial CEO Jay Pestrichelli to discuss how AFTER the market ran up in January people are bullish according to the new AAII Individual Investor survey. Plus, updated numbers on the difference in hypothetical returns if you missed ONLY the 2 best day each year over a 10 or 20-year period. Then, we continue to get economic data that is telling different stories so what to believe? Then they give some recommendations.

 

 

AAII Sentiment Poll Bulls minus Bears turns positive after 44 consecutive weeks bearish.

NAAIM Exposure Index (Active Manager Equity Exposure) most bullish since Jan 2022

Shocking difference in returns when taking out 2 best market days over 10 and 20 years

Worst 20 year rolling return was still positive

Atlanta Wage Growth tracker shows wage growth still strong

Difference between job switchers and job stayers still wide (make more switching)

Leisure and Hospitality wages still surging to new highs

Since WWII markets have taken off 7 months post inflation peaks on average

Inventories in durable goods and lumber (and other construction materials) move higher

Fed governors talk tough and market implied fed funds rate surges higher

People are spending down the post-Covid excess savings

 

 

Mentioned in this Episode:

 

Personal Savings https://fred.stlouisfed.org/series/PSAVE

 

Wage growth tracker https://www.atlantafed.org/chcs/wage-growth-tracker

 

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