What Option Volatility Means for Markets | Is the Market Too Dovish on Interest Rate Expectations? | Does the Fed Need an Economics Lesson‪?‬ Broken Pie Chart

Derek Moore and Jay Pestrichelli, CEO of ZEGA Financial, are back to discuss whether the Fed grasps how prices historically always rise. That prices never drop and inflation dropping doesn’t mean prices go down. Then they discuss the forward earnings estimates showing growth for the S&P 500 Index while comparing price to sales compared to January of 2022. Later, they discuss what the option volatility markets are signaling for the S&P 500 over the near term. All that and more plus is the market pricing in too many rate cuts?
 
Is the market pricing in too many rate cuts?
What the option volatility markets are signaling for the S&P 500
Inflation dropping doesn’t mean prices go down
Supply side inflation vs demand side inflation
Why throwing money (stimulus) into the economy during a supply side problem was misguided
Reviewing option market volatility and what the volatility indicators are telling us about markets
The volatility of volatility (VVIX) movements of late
Forward earnings estimates point to growth expectations for the S&P 500 Index
 
 
Mentioned in this Episode:
 
Hedging With Options Examples | Soft Landing? | US Congress Trading Returns | Is Good News or Bad News Good?
https://podcasts.apple.com/us/podcast/hedging-with-options-examples-soft-landing-us-congress/id1432836154?i=1000640844619
 
Bitcoin ETF Sell the News? | Expect Stock Market Corrections | Value vs. Growth | Travel Inflation Cooling?https://podcasts.apple.com/us/podcast/bitcoin-etf-sell-the-news-expect-stock-market/id1432836154?i=1000641595251
 
 
 
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
 
Derek Moore’s book Broken Pie Chart https://amzn.to/3S8ADNT
 
Contact Derek derek.moore@zegafinancial.com
 
www.zegafinancial.com