What a year this week has been!
If we had to sum up the month of April in 10 words or less, here goes: Risk happens slowly at first, then all at once.
In the past five trading days, 1) the Russell and Nasdaq officially re-entered crash mode, 2) U.S. 1Q 2022 GDP came in at -1.4%, 3) the VIX is up almost 20% and 4) Tech bellwethers like Amazon (AMZN) and Netflix (NFLX) collapsed on disappointing earnings.
Literally none of these developments came as a surprise to Hedgeye. For much of 2022…
- Our Risk-Manager-In-Chief Keith McCullough’s Risk Range™ Signals have registered bearish trends on Small Caps and Tech
- Our Macro team had the lowest GDP estimate on Wall Street; and
- Our team of non-consensus research analysts nailed a number of high-profile short calls – like Netflix (NFLX)
Then you’ve got the opposing side of these Hedgeye investing calls. You may want to grab yourself a barf bag before you read what comes next…
- CNBC reported that, “U.S. economic growth unexpectedly declined in the first quarter by 1.4%”
- Of all the stock ratings on Wall Street, more than 57% are currently “buy” ratings, the highest percentage since September 2011
- And the icing on the cake? CNBC mouthpiece Jim Cramer actually said, “I think the bear market is over,” (on March 25!)
What a steaming pile of cow dung.
Okay. What we’re going to say right now shouldn’t have to be said, but here goes:
CNBC should fire Jim Cramer.
There is literally no logical explanation why Jim Cramer still has a job. To say nothing of Jim’s “the bear market is over!” call (right before the market collapsed almost -10%), at the top of Wall Street’s pile of cow dung are Jim Cramer’s “Magnificent 7.” Most of these top stock picks are down -50% to -90% since he unveiled this list.
Listening to Jim Cramer’s investing advice is worse for your financial health than chain smoking cigarettes or huffing down greasy cheeseburgers. At least the cigarettes and cheeseburgers take time to kill you. LOL.
PS: We’re old enough to remember the time Jim Cramer slandered Hedgeye and our short call on Linn Energy? Of course, that same stock went to ZERO? Yes, we remember.
And of course, no one forgets this timeless gem from 2008, “Bear Stearns is fine. Do not take your money out.”
But we digress.
We take risk management very seriously at Hedgeye. That’s why it makes our skin crawl when people like Jim Cramer toots horns and yells “Buy, buy, buy!” to hundreds of thousands of investors every day. That’s NOT a risk management process.
Our repeatable, risk management process is designed to proactively prepare you for the next big market move. When we’re wrong, we own it, we know exactly why, and rest assured we won’t (and don’t) stay wrong for long. Every day we reserve the right to change our mind and get on the right side of the market based on the data we track.
- That’s why we run predictive tracking algorithms that are fed data every single day to spot inflections in economic growth and inflation
- That’s why we employ a research team of 40+ fundamental research analysts monitoring every aspect of U.S. equities
- That’s why our CEO developed a quantitative Risk Range™ Signaling process to identify bullish and bearish trends across all asset classes in Global Macro
As our CEO Keith McCullough likes to say, “It’s the Singularity of this process that keeps us on the right side of the grass every day.”
Don’t let your portfolio get killed by bad “advice” purveyed by unaccountable entertainers on Mainstream Media.
Finally, if anyone from CNBC is reading this right now, fire Jim Cramer. He is way past his expiration date.
A final, final note: If you’d like to learn more about our market research, get 66% off 3 months of Hedgeye research right now.