An institutional investor asked Keith McCullough last week how he’d respond to a surprise like an unexpected OPEC production cut. It didn’t take long to find out.
A day after OPEC announced it would reduce daily oil production by 1.15 million barrels, Hedgeye’s CEO is sticking to his process.
“Frosty the Snowman could tell me not to buy oil and I wouldn’t care,” McCullough explains in this clip from The Macro Show. “All I care about are three things: Where’s the trade, where’s the trend, where’s the risk range?”
The worst thing to do is emotionally react to news developments, particularly when they’re connected in a big picture #Quad4 investing landscape.
“OPEC panicking isn’t any different than bank bailouts and the panic there,” McCullough explains. “In a two-week period, we’ve had the Fed panic, the Treasury panic, and OPEC panic. They’re all panicking about the same thing: #Quad4 demand. This would not be happening if demand was accelerating.”
