Cartoon of the Day: #ConsumerSlowing
U.S. consumer spending fell 0.2% in September, according to a government report this morning. It’s yet another sign of the weak US consumer.
CHART OF THE DAY: Panic Plan, CTRL-Print
What we need to care about is where marked-to-market risk is right here and now. Then make the best risk management decisions we can make on the bounce. Chase or sell?
FLASHBACK: Hedgeye's Keith McCullough Warns About the Return of Deflation In This 2-Minute Video
Before formally introducing it as one of our top Q4 non-consensus macro themes, Hedgeye CEO Keith McCullough explained during an institutional call in September why we were likely heading into Quadrant 4 of his model. For the record, during this call McCullough also advised getting long Utilities (XLU) which is up well over 6% since this video first aired, versus the S&P 500 which is down -1%.
Cartoon of the Day: A Closer Look Behind Today's GDP Report
A closer look behind today's GDP number reveals a picture not nearly as pretty as the headline suggests. For starters, government expenditures accelerated QoQ (contributed = 0.83). Right on time for Big O's midterms. Meanwhile, Growth in Investment decelerated to +1% QoQ from +19% QoQ with residential investment leading the deceleration. Not good.
QUICK HIT | Peeling Back the Q3 GDP Onion: #Quad4 Is Confirmed
With this [soon-to-be-revised-down, pre-election Q3 GDP print], the U.S. economy is squarely in #Quad4 and should remain there throughout Q4.