Hedgeye CEO Keith McCullough opened The Macro Show this morning as he so often does, by pointing out economic realities unnoticed and unreported by mainstream media. Why? There’s a lot of money to be made searching for investment opportunities where no one else is looking.
"This isn't a local high. This is a three-year high," McCullough says of the USD/JPY (US Dollar to Japanese Yen), an asset Hedgeye’s Risk Range™ Signals have long been bullish on. “This continues to reflect our view that the Japanese have easy monetary policy, whereas the Fed has tight monetary policy. Not everybody completely understands that. If they did, they’d be talking about the bull market in the dollar all the time against the yen.”
But wait, there’s more…
While CNBC incessantly pumps the U.S. stock market, McCullough dissected another unreported fact during today’s edition of The Macro Show: The 2-year yield didn’t move a single basis point in the span of 24 hours.
“Everybody needs and wants to believe bond yields are going down, therefore you’ve got to buy the seven stocks everyone owns,” McCullough explains. “That doesn’t say anything about next week’s inflation report or that the government could shut down in eight days. You know about that right? If you listen to The Call @ Hedgeye, JT Taylor reviews it every single day.”
“Those two things [the U.S. Dollar and 2-year yield] aren’t yesterday’s news. They’re tomorrow’s news,” he concludes. “What we’re trying to do is use the currency market, bond market, commodity market and equity market to front-run the future in terms of economic reality.”
Watch the full clip above.