Derek Moore and Jay Pestrichelli talk through the latest market action including the forward PE ratio looking frothy, yields continue rising, probability of rate cuts dropping, and when and if the US Dollar strength will be a problem. Plus, talking about Barron's article comparing the market cap of MicroStrategy vs the value of their Bitcoin holdings. S&P 500 Index earnings yield vs the 10-year Treasury yield. Then, they discuss why people are saying we are going to have a coming second surge for inflation. Later, they talk about volatility on Nvidia a week out from earnings and their options, 90+ days delinquent credit card debt rising, and comparing post-election rallies around close Presidential elections.
MicroStrategy market cap value vs the value of their total Bitcoin holding
Post election rallies around close Presidential elections
10-Year Treasury Yields acting different than normal post Fed cutting action
US 2-year Treasury yield vs the Fed Funds target rate
Probability of interest rate cut in December update
US Inflation progress stalled in October?
US Dollar Index pushing through resistance
When the US Dollar strength matters and when it doesn't
Comparing where we are today with inflation against the 1970s chart
S&P 500 Index risk premium (forward earnings yield minus 10-year treasury yield)
Percentage of US credit card debt that is delinquent reaches highest level in over a decade
S&P 500 Index forward EPS estimates
Barron's article evaluating MicroStrategy's premium to its Bitcoin holdings
Mentioned in this Episode
Barron's Article on Bitcoin vs MicroStrategy valuation
https://www.barrons.com/articles/microstrategy-stock-price-bitcoin-valuation-702281bd
Explanation of US sugar tariffs and the history of behind them https://www.cato.org/policy-analysis/candy-coated-cartel-time-kill-us-sugar-program#an-overview-of-u-s-sugar-policy
Derek Moore's book Broken Pie Chart https://amzn.to/3S8ADNT
Jay Pestrichelli's book Buy and Hedge https://amzn.to/3jQYgMt
Derek's book on public speaking Effortless Public Speaking https://amzn.to/3hL1Mag
Contact Derek derek.moore@zegainvestments.com
