Broken Pie Chart

Welcome to the Broken Pie Chart Podcast Episode 5 Do Presidential, Senate, and House Party Affiliations Really Impact Stock Market Returns? In this episode host Derek Moore takes listeners through historical S&P 500 Index Total Returns back to 1923 matched up with the President, whether they were republican or democratic, as well as the party affiliation of the senate and house

Welcome to the Broken Pie Chart Podcast Episode 4 Hedged Equity and Protective Investment Strategies. This week host Derek Moore , author of Broken Pie Chart, is once again joined by Jay Pestrichelli of ZEGA Financial and author of Buy and Hedge. Investors often miss out because of staying un-invested for fear of large market drawdowns or try to pick the absolute market top and sell too early. Derek and Jay have a lively discussion around what exactly strategies that hedge downside risk are and how they may solve some dilemmas for investors. They also examine how the trick is shifting equity risk for more short duration fixed income risk while keeping the cost of downside protection low. Later they discuss how investors often want insurance at the very worst times when it costs the most while shunning the idea for protective strategies when they are the cheapest to put on. Learn how investors can look to have the goal of capturing much of the upside in markets while eliminating most of the downside.

Key Takeaways:

• • What are hedged equity strategies?
• • How do investment strategies protect the downside in portfolios?
• • Why do investors suffer from fear and greed?
• • Why simply getting long equities and buying puts is only half the story.
• • Derek Moore highlights parts of the book Buy and Hedge explaining who hedges work in portfolios
• • Jay Pestrichelli elaborates on the crafty change from Buy and Hold to Buy and Hedge
• • Are bonds and thus the old 60/40 portfolios a thing of the past?
• • Why investors within 10-20 years of retirement might need more growth that they think
• • When markets sell off substantially, it all goes down
• • Derek Moore elaborates on the chapter Why Diversification Fails from his book Broken Pie Chart
• • Later Jay and Derek discuss various approaches which offer only soft hedges and floors rather than hard floors.
• • Finally, they tease a future episode with a short introduction to providing downside buffers in portfolio strategies

Mentioned in this Episode:

Broken Pie Chart Book by Derek Moore https://amzn.to/2MibTSk

Buy and Hedge Book by Jay Pestrichelli and Wayne Ferbert https://amzn.to/2P3gw17

Welcome to the Broken Pie Chart Podcast Episode 4 Hedged Equity and Protective Investment Strategies. This week host Derek Moore , author of Broken Pie Chart, is once again joined by Jay Pestrichelli of ZEGA Financial and author of Buy and Hedge. Investors often miss out because of staying un-invested for fear of large market drawdowns or try to pick the absolute market top and sell too early

Welcome to the Broken Pie Chart Podcast Episode 3 Short Volatility. In this episode Derek Moore and guest Jay Pestrichelli discuss the emergence of short volatility strategies. How selling option premium with short put spreads and short call spreads can potentially generate income. With the low interest rate environment bonds are experiencing, will short volatility strategies start nudging fixed income's place in many portfolio pie charts? We also discuss how sometimes the VIX Index is mistakenly thought of as the only way to play volatility and how VIX strategies differ from other short volatility strategies.

Key Takeaways:

• • What are short volatility strategies?
• • Selling put and call credit spreads to generate income.
• • Should short volatility strategies be part of portfolios given low bond interest rates?
• • What is the VIX index?
• • Why selling volatility premium doesn't necessarily mean the VIX
• • Broad based index options
• • How do probability calculations factor into position?
• • Implied volatility as a proxy for expected market moves
• • Implied volatility versus historical volatility
• • Risks in selling option premium
• • How high probability options selling might handle various market conditions

Mentioned in this Episode:

Broken Pie Chart Book by Derek Moore https://amzn.to/2MibTSk

Buy and Hedge Book by Jay Pestrichelli and Wayne Ferbert https://amzn.to/2P3gw17

In this episode Derek Moore and guest Jay Pestrichelli discuss the emergence of short volatility strategies. How selling option premium with short put spreads and short call spreads can potentially generate income. With the low interest rate environment bonds are experiencing, will short volatility strategies start nudging fixed income’s place in many portfolio pie charts?

Welcome to the Broken Pie Chart Podcast Episode 2 Yield Curve Explained. In this episode we will explore what the yield curve is, how the difference between short term interest rates and long-term interest rates can change the shape and look of the yield curve. We also touch on why everyone seems to be talking about potential yield curve inversions and what that means for the economy. Discussion builds around giving some historical perspective on past recessions in the US where we saw a yield curve inversion prior to it although how far before is another story. While many perceive a yield curve inversion as a good predictor of a potential future recession, undoubtably in a post zero interest rate environment enabled by the Federal Reserve Bank in the post 2008 Great Recession world, some may argue that this time is different. We'll look to cover why it may or may not matter this time.

Key Takeaways:

• What is the yield curve?
• Why is the shape of the yield curve important?
• How many of the past recessions did the yield curve invert?
• What is a yield curve inversion?
• While the US is experiencing a flat yield curve, other countries like Germany see a more normal shape to their yield curve
• Negative interest rates in many European government bonds especially on the short end of the curve
• Short duration bonds seeing highest percentage increase in rates
• The Federal Reserve Bank
• Reasons to stay invested even in the face of a yield curve inversion
• Historical references to time between a yield curve inversion and a recession

Mentioned in this Episode:

Broken Pie Chart Book by Derek Moore https://amzn.to/2MibTSk

Bloomberg.com Country Government Bond Yields https://www.bloomberg.com/markets/rates-bonds

Federal Reserve Bank of St. Louis chart of spread between 10 Year Treasuries and 2 Year Treasuries https://fred.stlouisfed.org/series/T10Y2Y

Welcome to the Broken Pie Chart Podcast Episode 2 Yield Curve Explained. In this episode we will explore what the yield curve is, how the difference between short term interest rates and long-term interest rates can change the shape and look of the yield curve. We also touch on why everyone seems to be talking about potential yield curve inversions and what that means for the economy

Welcome to the Broken Pie Chart Podcast. This is episode 1, and I'm your host, Derek Moore. Today we'll be discussing key factors in saving for retirement and a bit about retirement calculators. The genesis of this discussion came about when I was recently asked, "Do I have enough saved based upon my age? When do you think I can retire?"

Where you are as an investor is a function of several inputs. So I thought it would be helpful today if I went through some of the inputs that go into these calculations, such as: the percentage you're investing annually, other means of income in saving, building equity, inflation, risk management, and more. I also talk about the different ways these calculators are programmed and what you have to be careful of, and consider, when inputting your information into these calculators.

Key Takeaways:

[:12] Today's topic of discussion: retirement calculators and what to consider when saving for retirement.

[2:30] How these retirement calculators work and all the components you need to consider in your calculations.

[9:09] The most important factor in saving for retirement.

[10:42] The difference between the percentage of your contribution amount.

[13:29] Accommodating for inflation and why it matters.

[16:42] Why you shouldn't depend fully on social security.

[19:16] Another extremely important factor: your return on investment.

[22:12] What would happen if we had a year like the 2008 market crash again?

[24:11] Other means of income in saving for your retirement.

[26:13] About the Monte Carlo simulation.

[27:12] Things to be careful of when calculating.

[29:27] If you have any questions, reach out to me at RazorWealth.com.

Mentioned in this Episode:

Cost-of-Living-Adjustment (COLA) Social Security

Monte Carlo Simulation

RazorWealth.com

Welcome to the Broken Pie Chart Podcast. This is episode 1, and I’m your host, Derek Moore. Today we’ll be discussing key factors in saving for retirement and a bit about retirement calculators. The genesis of this discussion came about when I was recently asked, “Do I have enough saved based upon my age? When do you think I can retire?”