The economy remains artificially inflated by the success of seven large-cap Tech companies. Investors enamored by a handful of high-performing stocks are overlooking many more indicators that the bubble is about to pop.
“This very short-term FOMO largely has to do with the institutional reality of performance chasing,” Keith McCullough explains in this clip from The Call @ Hedgeye. “This is exactly what happened in 2001 by the end of the first quarter and 2008. It’s not like it’s never happened before. This time it’s just happening in a bubble cap.”
Retail analyst Brian McGough sees people chase market rallies in his sector more than any other. Looking beyond the surface at actual data shows why that’s a bad idea.
“Sales trends are getting worse, credit card data since the banking crisis is getting worse, traffic data for retailers is getting worse in almost every category,” McGough explains. “In conversations I’m having with institutional clients over the past two weeks, people want to know what to buy, and they’re very short conversations because I can’t give them anything.”
Watch the full clip above.
