Market Correction | Mortgage Rates Higher | No Thanks 24-Hour Trading | Synthetic Options
By Derek Moore
Show Summary:
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.
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Topics Include:
- 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
Previous Week’s Podcast:
Market Selloff | No Rate Cuts? | Bitcoin vs Gold | CPI Inflation Sticky | VIX Curve
Jay Pestrichelli’s book Buy and Hedge
Derek’s new book on public speaking Effortless Public Speaking
Derek Moore’s book Broken Pie Chart
Contact Derek derek.moore@zegafinancial.com