Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
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This morning, the 10s minus 2s Spread is crashing to a new Cycle Low for #Quad4 of -109 BASIS POINTS. Please, tell me a Perma BS story about how that’s good for Banks (KRE) and those levered to Rising Cost of Capital in Real Estate (XLRE)? There’s an old joke up here in Thunder Bay about guys selling you “tips” on Gold stocks: “a gold mine is a hole in the ground with a liar on top.” Whatever Perma Bulls tell me about the Yield Curve, I won’t believe them anyway. |
