As the list of underwater bank stocks grows, more people on Wall Street are flocking to sectors that have (so far) stayed somewhat dry. Hedgeye’s CEO Keith McCullough says that means big-cap, low-beta MAGMA (Microsoft, Apple, Google, Meta and Amazon) stocks are about to get more popular.
That’s not advice—it’s a warning: The last part of the ship to stay afloat is also the fastest to sink. And in these #Quad4 conditions, sinking is a certainty.
“When water was coming onto the Titanic, that’s one thing,” McCullough explains in this clip from The Macro Show. “But when it’s actually going under, the risk becomes more obvious and more devastating. That is not unlike the cycle. It is doing down, and the only thing between it going underwater and you is time and space.”