Recessionary signals are reverberating throughout commodities, from butter (-4.55% Friday) and orange juice (-10.64%) to oil (-4.2% last week) and palladium (down -13.3%).
“It’s a good thing we’re not long palladium. It’s another good thing we got people out of Energy (XLE),” Keith McCullough says in this clip from The Macro Show. “People (at last week’s Hedgeye conference) in Chicago were like, ‘That was surgical, man. That was really well done.’”
Followers of mainstream media who react to headlines and hype, rather than an established process, missed out on these massive shifts.
“Old Wall started to figure out orange juice was going up three months after it went up. Way too late,” McCullough concludes. “Now it’s going down, because we’ve entered the recession.”
Watch the full clip above.