Putin’s Puppet Medvedev

President Dmitry Medvedev and Prime Minster Vladimir Putin of Russia’s United Russia party met before congress today to promise Russia would emerge stronger from a world economic crisis, one Putin purported was triggered by U.S. recklessness. Putin’s 45-minute speech, which trumped Medvedev’s much shorter opening remarks, provides further evidence that a return of Putin to the presidential “thrown” is highly probably.

Speculation about a possible Putin comeback first hit the wires on November 5th when Medvedev proposed extending presidential terms (not including his own current one) from four to six years, which Parliament approved on the second of three readings Wednesday. With the current constitutional limits of two consecutive terms, this recent reform will be used to justify holding early elections to return Putin back to his seat.

Tensions have escalated in recent months between Washington and Moscow over U.S. proposed instillation of 10 interceptor missiles in Poland to counter the likes of Iran. Further, the relative lack of response from US and EU officials to negotiate the remove of Russian troops following their invasion of Georgia in early August signals an increased inability of the international community to deal with dictatorial Russia.

Medvedev’s pledge of $200 billion in loans, tax cuts, and other measures might make a small dent in an economy that is expected to slow to 3% growth next year, but it won’t shore up the financial trouble of an economy levered to oil, which just touched a three and a half year low of $51.12. Putin, who stepped down in May, may use the current vacuum of both economic and political leadership to return to power sooner than anyone expects.

Daryl Jones
Managing Director

Matthew Hedrick
Analyst

Cartoon of the Day: Bulls Leading the People

Investors rejoiced as centrist Emmanuel Macron edged out far-right Marine Le Pen in France's election day voting. European equities were up as much as 4.7% on the news.

read more

McCullough: ‘This Crazy Stat Drives Stock Market Bears Nuts’

If you’re short the stock market today, and your boss asks why is the Nasdaq at an all-time high, here’s the only honest answer: So far, Nasdaq company earnings are up 46% year-over-year.

read more

Who's Right? The Stock Market or the Bond Market?

"As I see it, bonds look like they have further to fall, while stocks look tenuous at these levels," writes Peter Atwater, founder of Financial Insyghts.

read more

Poll of the Day: If You Could Have Lunch with One Fed Chair...

What do you think? Cast your vote. Let us know.

read more

Are Millennials Actually Lazy, Narcissists? An Interview with Neil Howe (Part 2)

An interview with Neil Howe on why Boomers and Xers get it all wrong.

read more

6 Charts: The French Election, Nasdaq All-Time Highs & An Earnings Scorecard

We've been telling investors for some time that global growth is picking up, get long stocks.

read more

Another French Revolution?

"Don't be complacent," writes Hedgeye Managing Director Neil Howe. "Tectonic shifts are underway in France. Is there the prospect of the new Sixth Republic? C'est vraiment possible."

read more

Cartoon of the Day: The Trend is Your Friend

"All of the key trending macro data suggests the U.S. economy is accelerating," Hedgeye CEO Keith McCullough says.

read more

A Sneak Peek At Hedgeye's 2017 GDP Estimates

Here's an inside look at our GDP estimates versus Wall Street consensus.

read more

Cartoon of the Day: Green Thumb

So far, 64 of 498 companies in the S&P 500 have reported aggregate sales and earnings growth of 6.1% and 16.8% respectively.

read more

Europe's Battles Against Apple, Google, Innovation & Jobs

"“I am very concerned the E.U. maintains a battle against the American giants while doing everything possible to sustain so-called national champions," writes economist Daniel Lacalle. "Attacking innovation doesn’t create jobs.”

read more

An Open Letter to Pandora Management...

"Please stop leaking information to the press," writes Hedgeye Internet & Media analyst Hesham Shaaban. "You are getting in your own way, and blowing up your shareholders in the process."

read more