In this clip from today’s edition of The Macro Show, Hedgeye CEO Keith McCullough highlights the key macro moves and investment opportunities he’s keen on while most investors panic sell on “contagion risk” headlines sold to them by the mainstream media.
Today’s Top 3 Things: Hong Kong, European Equities, Volatility (VIX + Implied Vol)
1) We started shorting China (via $FXI) in Q1 and Hong Kong (via $EWH) in June on #Quad Stagflation.
“The best way to deal with fading the contagion is to be short of China and Hong Kong”
2) Big immediate-term TRADE duration oversold signals. Big time opportunity to buy the European dip.
“I’m going to buy the Euro again; I bought some Euros on Friday I’ll do it again this morning. There’s a lot to do here. European interest rates are down this morning, as opposed to up (which they were on Friday).”
3) We’ve seen episodic and non-trending volatility levels nearly every month since November. Implied Vol premiums were setting the table for an emotional puke. What will McCullough do on this vol spike? Fade it.
“I’ve been a buyer on episodic and non-trending volatility. I’ve been buying it, and I’ll continue to this morning. That’s the game, play it.”
