Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
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For those of you who like to watch winning, all-time is a long time. There are only 2 Quads that have that Similar Set of A) and B) happening at the same time: #Quad2 and #Quad3. In the USA, the #Quad2 to #Quad3 Phase Transition was very obvious from a Sector Style and Factor Exposure perspective. As a reminder, that’s when you pivot from SMALL to LARGE CAP and up your exposure to GROWTH and QUALITY (balance sheet): A) GROWTH: Top 25% SALES Growers (in the SP500) were up +2.8% on the week For those of you who crushed it for the Full Cycle of Global #Quad2, you’ll recall that #Quad2 loved being long crap. Small cap crap, all the better (see our long GME call way back then for peak return details before #Quad3 started sneaking in). Since that GROWTH Factor return looked very much like being long Tech or the NASDAQ (both were up another +2.8% on the week to new all-time closing highs as well), there were plenty of #Quad3 pivots that paid off last week including Long Natural Gas. |
