The Firm That Called Inflation "Trending" (Not "Transitory") Over A Year Ago - eeeef

“The best way to protect yourself from rising inflation is by owning it.” –Hedgeye CEO Keith McCullough

The topic du jour in mainstream financial media? Inflation.

  • Oil is up nearly +50% this year alone, briefly spiking past $76 per barrel (putting pressure on businesses and consumers at the pump)
  • May CPI soared past expectations to 5% (with everything from used cars to groceries gobbling up paychecks)
  • Home and rent prices are up +14.3% and +8.4% respectively in recent prints (killing home buyers, renters and the American Dream)

Overwhelmingly, Wall Street economists have dismissed rising inflation, arguing that price pressures will fade as COVID-19 supply pressures ease. After missing the entire inflationary move higher, Wall Street, CNBC pundits and Fed bureaucrats now call inflation "transitory."

Who caught the inflationary rocket ship a year before it launched?

The Hedgeye Process.

Hedgeye CEO Keith McCullough, a former hedge fund manager, and his team of 40+ research analysts said to go long of #InflationAccelerating in June 2020. The only thing worse than getting whacked by inflation at the gas pump or the grocery store is not preparing your portfolio for an inflationary spike.

Here’s just one example of how McCullough prepared Hedgeye subscribers for inflation, per his morning Early Look note to subscribers from June 19, 2020:

#InflationAccelerating = Buy Commodities

Got people pitching you on some great stocks? How about something longer-term that A) hasn’t gone bankrupt and/or B) have to beg for a Fed Bailout in order to be an ongoing concern? You know, like a “Secular Grower”, or something like that – like food!

While it’s probably not as “cool” as something like Facebook (FB) used to be, as our Real-Time Alerts subscribers know, I’ve recently been buying some secular consumption longs of my own: Cattle, Hogs, Corn, and Soybeans.”

Here's an inflation/commodity reality check from June 19, 2020 to today (i.e. as of 8/9/2021):

  • Hogs: 91%
  • Corn: 64%
  • Cattle: 19%
  • Soybeans: 62%
  • Oil: 178%

In other words, we didn't miss this #InflationAccelerating move higher. Wall Street did. Watch below to see him recap his long commodities call on The Macro Show, including flashbacks from previous editions in Summer 2020:

So, are you proactively preparing for the next major market move? Or do you still believe CNBC and Fed "transitory" nonsense?

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