Market Returns After 1st Rate Cut? | AI Revolution Like 1990s Internet? | What If They’re Wrong on Rates?

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?

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? https://podcasts.apple.com/us/podcast/1994-95-all-over-again-in-markets/id1432836154?i=1000590865306

Derek Moore’s book Broken Pie Chart https://amzn.to/3S8ADNT

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

Contact Derek derek.moore@zegafinancial.com

www.zegafinancial.com