By Derek Moore
Derek Moore and ZEGA Financial CEO Jay Pestrichelli explore data showing its cheaper to rent vs. buying a home in all but 3 markets. Then they bring up the WSJ article saying companies are “juicing” earnings evidenced by the Beneish-M score and historically whether a high M-score predated market tops. Later they look at how the top 10 market cap-weighed companies have changed over the decades and why this supports buying indexes (but being hedged!). Finally, the VIX did something it hasn’t done since…. All this and more in this week’s episode.
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- Where is the homeownership premium the highest?
- Cheaper to rent vs own based on data from Redfin and Freddie Mac
- Comparing interest portion of mortgages to paying rent
- What is the Beneish M-score?
- Article by WSJ shows M-score is elevated at market peaks.
- A WSJ article says companies are using financial accounting to juice earnings.
- Top 10 largest by market cap companies in the S&P 500 index by decade
- What about top 10 by market cap companies in the world?
- The VIX now has a low not seen for several years.
- What is going on in the world of volatility?
- Equity market leadership shifts over time
- Are Apple, Microsoft and the rest of the FAAMG stocks an exception?
Mentioned in this Episode:
Jay Pestrichelli’s book Buy and Hedge
Derek’s new book on public speaking Effortless Public Speaking
Derek Moore’s book Broken Pie Chart