Market Returns After 1st Rate Cut? | AI Revolution Like 1990s Internet? | What If They’re Wrong on Rates?
Show Summary:
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?
All this and more!
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Topics Include:
- Implied volatility surges along with its stock price
- 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?
Previous Week’s Podcast:
Economy Weakening? | What Makes Markets Go Up or Down? | Tesla Goes Up and Option Volatility Up | Economic Surprise Index
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@zegainvestments.com