THE MARKET continues to crash... AND we CALLED IT (AGAIN)
We don't care about taking some 'intellectual victory lap', we care that HEDGEYE SAVED PEOPLE MONEY.
Investors have very real expenses they need to take care of:
- Kid's college education
- A down payment on a house
- Business loans
Bottom line: we helped our subscribers PROTECT & PRESERVE their hard-earned capital, so they're not left sitting on their hands with -30% of their capital washed away.
Since we kicked of 2022, investors (who 'just kept buying') have been eviscerated. Here's a snapshot of markets this year:
- The Dow has fallen over -5,000 points
- The NASDAQ is down -28%
- Bitcoin got chomped, down -39%
It's the worst start of the year for markets in decades; nearly $8,000,000,000,000 of the S&P 500's market cap has been wiped out. EIGHT. TRILLION.
Hedgeye CEO Keith McCullough began signaling #Quad4 to our subscribers back in September of 2021, making critical pivots as we entered 2022 in January and February, and along the way.
Watch the six minute video below to see just how we did it.
"The Russell 2000 in short order will be down -20% or more from its cycle peak. I think the NASDAQ's going to crash too, it won't take long."
- Hedgeye CEO Keith McCullough on the January 27, 2022 edition of The Macro Show
It's when economic growth and inflation decelerate at the same time. It’s also when story-telling, narrative-driven, ‘stock pickers’ with no repeatable investing process get absolutely blown up as risk assets get smoked.
In simple terms, #QUAD4 IS WHEN $H*T BREAKS.
Watch this video from The Call, where Hedgeye CEO Keith McCullough and Financials & Macro analyst Josh Steiner talk #Quad4 carnage days before the latest market rout.
The Macro Show is a special live online broadcast offering smart investors and traders of all stripes the clearest market analysis available on Wall Street from Hedgeye CEO Keith McCullough, premarket every day. Subscribe here.
At the heart of Hedgeye's mission is to bring best in-class, institutional investment research to all investors... and COACHING investors on how to view markets like (and oftentimes, better than) the pros. In the clip below from a recent edition of The Macro Show, Hedgeye CEO Keith McCullough described how hedge fund leverage and exposures were influencing the #Quad4 market dynamics.
How did we position subscribers? A quick rundown of our ETF signals per our ETF Pro product since January (not to mention the daily calls and risk management coaching from our Risk-Manager-in-Chief, but we'll keep it basic):
- On January 3, 2022, Hedgeye went long the U.S. Dollar (UUP) and Gold (GLD) (woah, don't tell a story-telling growth stock-picker!) This year, the Dollar is up +7.66%, and Gold has stayed steady up +0.7%. Not too shabby considering the S&P 500 is down -18%. #alpha
- On February 1, 2022, Hedgeye shorted Tech (XLK), Consumer Discretionary (XLY), and Retail (XRT)... they're down -18.5%, -23.4%, and -24.3%, respectively. The Hedgeye Process goes both ways; shorting is key to alpha generation. And if you can't short, underweighting these sectors would've generated alpha all the same.
- On February 28, 2022, we geared up subscribers for a key #Quad4 tenet: the breakdown of credit. Hedgeye shorted High Yield (HYG) and Junk (JNK)... and they're down -9.1% and -9.7% since, respectively.
- On March 21, 2022, we added MOAR key positions to the short side because we go #bothways, shorting the NASDAQ (QQQ) and the Russell 2000 (IWM). QQQ is down -16.7% and IWM is down -14.2%, since.
" #Quad4 markets crash from oversold levels. Never forget that. I'm not saying this market has to keep crashing tomorrow (from here). But I am saying it could.
The good news is we don't have to know what it's going to do. We are on the right side of this crash.
As a team, we take great pride in having helped you preserve and protect your hard earned capital during US stock market crashes since 2008." - Hedgeye CEO Keith McCullough in a Real-Time Coaching Note to subscribers going into the market close on 5/5/2022
Staring at a screen, consternating over losses while listening to your advisor or some T.V. talking head explain that 'you have a long time horizon, so don't worry about your portfolio's -20% drawdown!' is NOT how you should be spending your time.
Here at Hedgeye, we’re not about WORDS—we are about RETURNS.
If you’re looking for a better way to protect your hard-earned capital (and make money shorting asset classes that will sustain further losses), we can absolutely 100% help you.
In that spirit, we recently hosted our MACRO PRO 2Q 2022 MACRO THEMES PRESENTATION on Wednesday, May 11th.
Our flagship quarterly institutional call was recently opened up to our platinum, all-inclusive Macro Pro subscribers. In our Mid-Quarter update, subscribers will get access to an hour-long presentation from Hedgeye CEO Keith McCullough and the Hedgeye Macro Team, along with a 100+ slide deck, updating on our positioning and asset allocations, along with our future outlook for the remainder of the quarter (and year).
Deep #Quad4 in 2Q was the call. It has not disappointed.