Our economic outlook for the first half of 2024 is Quad 4 (both growth and inflation slowing). But as Keith McCullough explained today on The Macro Show, being bearish on the U.S. economy doesn’t mean we’re bearish on everything. Not even close.

That’s a critical coaching point many people miss.

“There’s always a bull market somewhere: UraniumIndiaCrypto now, Healthcare stocks, Utilities stocks, Insurance stocks,” McCullough explains. “I never say ‘the stock market.’ It’s a market of sectors, stocks and styles. And when you’re bearish on the economy, what you’ll find is a lot of those things go bullish.” 

“We’re not bearish on Tech. It’s teetering. Do I expect Tech to completely implode at some point? Yeah, but I’m long S&P 500 Top 50 (XLG) and S&P 500 Momentum (SPMO). Why? Because the signal says to be long it.” 

As subscribers can see in our Momentum Stock Tracker and Risk Ranges products, our signal is currently bullish on five of the mega-cap companies McCullough calls “the Magnificently Manipulated 7” (Meta, Amazon, Google, Microsoft, Apple, Nvidia and Tesla).  

“We’re fundamentally bullish on Amazon (AMZN),” McCullough adds. “We told you to buy Amazon twice last week. It’s okay to know that and be bullish on Amazon, the stock, and not call it ‘the stock market.’ And it’s okay for (Retail analyst) Brian McGough to have 70 short calls against that long.” 

Watch the full clip above. 

McCullough: We’re Bearish on the U.S. Economy. We’re Bullish On (Certain) Assets - TMS Banner