Capitulation: Markets Tend to Lead the Economy

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   Do markets always go higher after midterms? https://podcasts.apple.com/us/....podcast/do-markets-a   Why hedging is the answer for portfolios https://podcasts.apple.com/us/....podcast/why-hedging-   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