In this clip, Financials analyst Josh Steiner and Hedgeye CEO Keith McCullough highlight how used vehicle prices have been a massive driver of CPI and why their slowing from a rate-of-change perspective plays into our #Quad4 call.
“Used vehicle prices have been a massive driver of CPI, if we think about the deconstruction of the numbers we’ve seen recently,” Steiner highlights. “Not only are they slowing down, but they are actually declining. The base effects that I mentioned get dramatically steeper from here.”
“Every day I get a new thing that is breaking down. Wheat this morning (which is in the Top 3 of the Ag complex in terms of signaling impact) and Oil are both down 14% since March 8th,” notes McCullough. “If there was a day where I’m more confident in #Quad4, it’s been every day since Oil has been making lower highs. Copper too. And what you just said about used cars only amplifies that conviction.”
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