Market Volatility | Yen Carry Trade Unwind to Blame? | High Yield Holds Up

Market Volatility | Yen Carry Trade Unwind to Blame? | High Yield Holds Up

Author: Derek Moore August 5, 2024 Duration: 39:01

Derek Moore is back to talk through the latest market volatility as the VIX and VVIX both spiked this week. Markets had 2 greater than 2% pullbacks. Reading into the latest unemployment rate data. Plus, unpacking the unwinding of the carry trade involving the Japanese Yen and how this started before the recent market retracement. Finally, examining the high yield bond market as it has shown positive non-correlation with equities of late.

 

What does a currency Carry Trade mean?

What is the carry trade unwinding mean?

Why carry trades may show leverage in the system that causes ripples in financial markets

S&P 500 Index back to levels not seen since….June 7th

Unpacking the unemployment rate and how the rate rose even though more people working

Explaining the VVIX Index

VIX and VVIX spike this week with the market volatility

Comparing returns since the July 16th all-time high of equities vs high yield bonds

 

 

Mentioned in this Episode

 

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@zegainvestments.com

 

www.zegafinancial.com

 

 

 

 


Derek Moore hosts Broken Pie Chart, a podcast that digs into the practical realities of managing money in a complex world. The name comes from the idea that traditional, rigid models for investing and planning often don't reflect real life. Each episode takes a specific concept-whether it's portfolio construction, market behavior, or preparing for retirement-and breaks it down into straightforward conversation. You'll hear clear explanations of economic trends and financial principles without the jargon, focusing on how these ideas actually impact personal and professional decisions. This isn't about hot stock tips; it's about building a durable understanding of how markets and the economy function. The goal is to provide listeners with a stronger foundation for their own financial choices, making seemingly opaque topics accessible and relevant. Tune in for a thoughtful, grounded perspective that challenges conventional wisdom and simplifies the complicated.
Author: Language: English Episodes: 100

Broken Pie Chart
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