In this clip from The Macro Show this morning, Hedgeye CEO Keith McCullough explains why the U.S. Dollar is the number one asset allocation to have in a #Quad4 market environment - and how it’s inversely correlated to the S&P 500 on an immediate-term basis.

“If you did not implement a #Quad4 portfolio, you did not know that the fulcrum position in a #Quad4 portfolio is the dollar. It’s cash,” explains McCullough.

“That’s what happens when the correlation risk goes to basically 1, in this case it’s -1. The stock market is directly correlated to the inverse of the dollar, because people are going to cash, and stocks are crashing.”

Cash Is King (In #Quad4) - Hedgeye University