In Monday’s edition of The Macro Show, Hedgeye CEO Keith McCullough and Director of Research Daryl Jones discuss their Quad outlook for the back half of 2021, and the different types of market behavior we may see in a potential Quad 4.
"We’ve back-tested this 30+ years, and there are two Quad 4 scenarios, either narrow or deep. Narrow happens about 25% of the time, with the remaining 75% would be considered 'deep'. A Narrow Quad 4 can have a lot of Quad 2 market behavior. We’re not making that call yet; but strong underlying growth with a slow (rather than sharp) economic deceleration is certainly a unique regime," explains Jones, as McCullough then jumps into how the Signal and Quads interplay.