AI Summary
5 min readThe latest Compound and Friends episode features chief market strategist Jim Labenthal discussing the "weirdest stock market" amid volatility from geopolitical tensions in the Strait of Hormuz, oil price spikes, AI disruption fears, and private credit strains. With the S&P 500 down 5% from highs—its first correction since "liberation day"—hosts Josh Brown and Michael Batnick probe why there's no broad panic flush, while 40% of S&P stocks are in bear markets from staggered peaks.
Market Volatility Without Capitulation
Labethal attributes the lack of a sharp sell-off to seasoned investors who remember quick recoveries, like last year's. The VIX hit 35 briefly but sits at 24, far below August 2024's 60+ yen carry unwind spike. Sectors rotate phased corrections—manufacturing and housing already recessed—while high-beta stocks lag low-volatility ones, cyclicals trail defensives, and equal-weight consumer discretionary underperforms staples. Credit spreads aren't blowing out, and earnings revisions remain net positive for S&P 500 and Nasdaq 100 since May, with EPS broadening beyond megacaps.
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What you'll learn
- 1 (00:00) **🎙️ Introduction: Jim Labenthal**
- 2 (08:51) **Weirdest Stock Market Ever**
- 3 (12:28) **Why No Market Flush or Panic?**
- 4 (17:16) **Strong Earnings Amid Headwinds**
- 5 (20:09) **40% of S&P Stocks in Bear Markets**
- 6 (22:52) **Bearish Sentiment Signals Opportunity**
- 7 (25:27) **Record Stock Volatility**
+ Full timestamped outline available in the app
Show Notes
On episode 234 of The Compound and Friends, Michael Batnick and Downtown Josh Brown are joined by Jim Lebenthal to discuss: stock market volatility, who's winning the AI race, risks and opportunities in private credit, Jim's favorite stocks, and much more!
This episode is sponsored by Betterment Advisor Solutions and Janus Henderson Investors.
- Learn more at: https://betterment.com/advisors
- Learn more at https://www.janushenderson.com/
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Investing involves the risk of loss. This podcast is for informational purposes only and should not be or regarded as personalized investment advice or relied upon for investment decisions. Michael Batnick and Josh Brown are employees of Ritholtz Wealth Management and may maintain positions in the securities discussed in this video. All opinions expressed by them are solely their own opinion and do not reflect the opinion of Ritholtz Wealth Management.
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