In this clip from today’s edition of The Macro Show, Hedgeye CEO Keith McCullough reiterates that the Quad BACKTEST is merely an average of historical performances (going back to 1998) in each economic regime; by no means does it render any other outcome impossible. In this clip he uses the Dollar’s current Bullish TREND strength within our new #Quad1 pivot (despite its historical backtest as a poor performer.)
“'Well the backtest says the Dollar can't go up in #Quad1.' That's B.S. The backtest says that the best quarterly return for the $USD is in #Quad4, NOT THAT IT CAN'T GO UP IN ANY OTHER QUAD."
"It's not the average of things that matters, it's the particular thing. The backtest is a *starting point.* Every single Cycle is different."