Capitulation: Markets Tend to Lead the Economy Broken Pie Chart

Derek is joined again by ZEGA CEO Jay Pestrichelli to discuss what market capitulation looks like and are we there yet? Plus, how markets tend to turn up prior to the economy bottoming historically. Before some recommendations they discuss why the VIX isn’t higher and what the VIX curve is telling us now and in the past.
 
 
What is market capitulation?
Historical examples of markets bottoming months ahead of the economy
Are markets smarter than the economy?
The VIX futures curve
Why VIX isn’t higher
What the VIX is really telling us about volatility expectations
Can markets bottom out with just apathy instead of panic?
Post Midterm Election bounce?
Are we sure we are going to have a recession?
Everyone says a recession is coming but can everyone be right?
 
 
Mentioned in this Episode:
 
Higher interest rates provide opportunity for Buy and Hedge https://podcasts.apple.com/us/podcast/higher-rates-create-opportunity-for-hedging/id1432836154?i=1000581025635
 
Do markets always go higher after midterms? https://podcasts.apple.com/us/podcast/do-markets-always-go-up-after-midterm-elections/id1432836154?i=1000579103232
 
Why hedging is the answer for portfolios https://podcasts.apple.com/us/podcast/why-hedging-is-the-answer-for-portfolios-can-hedgers/id1432836154?i=1000578323267
 
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