In this morning’s edition of The Macro Show, Hedgeye CEO Keith McCullough answered a subscriber question regarding how he’s building his #Quad3 asset allocations.
“The thing not to do is go to a 5-10% position as soon as I say I like Gold. It’s a currency, so my max position in #Quad3 would be 10-12%. The signals that led me to buying more Gold in bigger increments were 1) it was at the low end of my Risk Range™️ Signal and 2) the correlation between Gold and the U.S. Dollar flipped – it went green (positive). That’s Jedi sh*t,” explains McCullough, as he highlights how he’s incrementally adding to his #Quad3 asset allocation to Gold.
“Building positions incrementally is for pros. And by pros I mean investors who can generate alpha, not just people who manage money for a living. A rising percentage of those ‘pros’ can’t beat beta.”