In this clip from today’s edition of The Macro Show, Hedgeye CEO Keith McCullough breaks down the key drivers of his economic outlook, how it’s affecting his positioning, and why risk managing actively is crucial to his investment process.
“Let’s say that the Russian incursion and war ended tomorrow, I would still do the exact same thing that I’m doing today; there’s no change. We’re short the U.S. equity market based on the U.S. economic cycle. We’re not short it based on Russia.
… The commodity market is going to augment the slowdown in real terms, because inflation will stay for longer than we originally had projected; but again, our projections change every single day. But did we change our positioning? Absolutely not.
Will I change my positioning on a net basis; if the S&P 500 is at 4202 today, will I cover my shorts? Yeah, and I’ll cover my shorts on the way there too. Risk managing actively is not for the faint of heart and it’s certainly not for the inexperienced, and it’s certainly not for newsletter writers.”
