When Do Oil Prices Matter? | Is Volatility Too High? | Components of S&P 500 Returns
Broken Pie Chart · Broken Pie Chart
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Show Notes
Derek Moore is joined once again by ZEGA Financial CEO Jay Pestrichelli to discuss why volatility remains high. How the VIX Index stays elevated even after the initial reasons subside. What is driving the market pricing of the S&P 500 Index and how it compares to prior 10-year periods. Plus, comparing this high oil price period to prior ones on an inflation adjusted basis.
What are driving returns right now (earnings or multiples)
Is the market getting cheap on a forward PE multiple base?
Comparing 10-year periods (referencing Sempres Augustus letter)
Looking at price inputs like revenues, share count, margins, multiples, and dividend yield
Is the embedded volatility premium (VIX Index) here to stay?
Discussing oil prices on an inflation adjusted basis
When do high oil prices matter?
When does inflation matter to the economy and margins for companies?
Will CPI released in April for the month of March reveal a +10% YoY?
Plus, Derek admits a bad beat on the contrarian corner
Mentioned in this Episode:
Contact Derek Moore [email protected]
Derek Moore's Book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547?ref_=nav_signin&
Jay Pestrichelli Book Buy and Hedge https://amzn.to/3i2UZoL
Sempres Augustus letter (see page 24 for where returns come from) PDF https://static.fmgsuite.com/media/documents/8b3d617a-4dc3-4dec-a621-23b1f6333833.pdf