Hedgeye CEO Keith McCullough was on CNBC this afternoon discussing the market meltdown and what is next for the global financial system. You can watch the clip here:
http://www.hedgeye.com/unlocked_ideas/12292 (copy and paste the link into your web browser to view)
This evening Keith will be joining Larry Kudlow on The Kudlow Report at 7pm eastern to accost more stock market bulls with our view that inflation is accelerating and growth is slowing.
The key points Keith will be highlighting tonight include:
1. Global Stock Markets - have been giving us Global Growth Slowing signals for 6 weeks – today’s China news shouldn’t be new news to anyone paying attention (we’ve been short Emerging Markets for the better part of 2011 and making money doing it)
2. US Stock Market – casino is as casino does. The correlation risk between stocks and the USD is surreal right now – thanks go out to The Bernank. Sadly, your buy-the-dip stock promoter can’t afford what this country really needs: inflation slowing via a strong dollar (like you had today).
3. Correction or crash? - we’ve been calling for a 3-6% correction since FUND FLOWS PEAKED in the week of February 14th – be my valentine little perma bull – here’s the 1st 3.5% of that correction. Our intermediate term downside support target for the S&P500 remains 1265.
4. Oil – trade it with a bullish bias. We sold our LONG OIL position on Monday and bought it back today. We want to be long the Day of Rage and continue to think that the Middle East will be a longer term story than consensus thinks. Any oil price > $90/barrel is a significant consumption TAX on US Growth.
5. US Economic Growth – sell-side forecasts for 2011 and beyond are still too high – US GDP of sub 3% for 2011 at oil > $90/barrel.
-Your Hedgeye Risk Management Team