Heli-Ben" is Santa! Christmas comes early!

In markets, and in life, there are always unintended consequences born out of aggressive actions. The politicized US Federal Reserve has certainly proven this since Clinton/Greenspan created the modern world of finance’s first Fed-watching mania. The Fed’s decision to cut to a “targeted range of ZERO to 0.25%” is the final chapter in a world that has come to be managed reactively, rather than proactively.

Clearly, today’s political pressures have mounted on Ben Bernanke to the point of no return. He is officially dropping US interest rates to ZERO. The best things in life, at least in the immediate term, are those that come for FREE. “Heli-Ben” flies again!

The unintended consequences will be dominated by the realities of our latest Investment Theme – “Re-Flation” – and there is no better chart that reflects the prospects for that “Re-flation” than the one below. Bah Bye US Dollar - hello asset class appreciation. While no one can truly believe that he has cut rates below those that are currently in place in Japan, guess what? He just did – believe it!

Never mind the long term implications – those don’t matter right here and now. This is very positive for the US stock market in the immediate term. My immediate term “Trade” target for the SP500 is 916. Next level of resistance in my model after that is 934.

Keith McCullough
Research Edge, LLC

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7 Tweets Summing Up What You Need to Know About Today's GDP Report

"There's a tremendous opportunity to educate people in our profession on how GDP is stated and projected," Hedgeye CEO Keith McCullough wrote today. Here's everything you need to know about today's GDP report.

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In the past six months, U.S. stock indices are up between +12% and +18%.

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“If you saved in gold over the past 20 to 25 years rather than any currency anywhere in the world, gold has outperformed all these currencies,” says Stefan Wieler, Vice President of Goldmoney in this edition of Real Conversations.

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We remain long Exact Sciences in the Hedgeye Healthcare Position Monitor.

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Inside the Atlanta Fed's Flawed GDP Tracker

"The Atlanta Fed’s GDPNowcast model, while useful at amalgamating investor consensus on one singular GDP estimate for any given quarter, is certainly not the end-all-be-all of forecasting U.S. GDP," writes Hedgeye Senior Macro analyst Darius Dale.

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People's Bank of China Spins China’s Bad-Loan Data

PBoC Deputy Governor Yi says China's non-performing loan problem has “pretty much stabilized." "Yi is spinning. China’s bad-debt problem remains serious," write Benn Steil and Emma Smith, Council on Foreign Relations.

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UnderArmour: 'I Am Much More Bearish Than I Was 3 Hours Ago'

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Buffalo Wild Wings: Complacency & Lack of Leadership (by Howard Penney)

"Buffalo Wild Wings has been plagued by complacency and a continued lack of adequate leadership," writes Hedgeye Restaurants analyst Howard Penney.

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Todd Jordan on Las Vegas Sands Earnings

"The quarter actually beat lowered expectations. Overall, the mass segment performed well although base mass lagging is a concern," writes Hedgeye Gaming, Lodging & Leisure analyst Todd Jordan on Las Vegas Sands.

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An Update on Defense Spending by Lt. Gen Emo Gardner

"Congress' FY17 omnibus appropriation will fully fund the Pentagon's original budget request plus $15B of its $30B supplemental request," writes Hedgeye Potomac Defense Policy analyst Lt. Gen Emerson "Emo" Gardner USMC Ret.

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