This morning on The Macro Show, Hedgeye CEO Keith McCullough dove deep into a growing disconnect in the current Old Wall’s narrative. On the one hand, markets are pricing in 200 basis points of rate cuts in the year head—on the other hand, they’re banking on optimistic earnings growth heading into 2025.
Keith walks subscribers through this inconsistency and how it could heighten downside risks for investors in a Quad 4 environment.
“The answer is, that’s the old wall narrative,” McCullough stated. “It doesn’t make sense, right?”
“What the market is telling you here is that they want to price in as many rate cuts as they can this year so [the Old Wall] can get paid this year. Then, they’ll deal with next year’s narrative next year.”
“There’s no intellectual honestly with this, to be clear, from the Old Wall. This is just like - how do we get the Fed to print and stocks to go up?”
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