Hedgeye CEO Keith McCullough appeared on CNBC’s Fast Money tonight. Three huge topics dominated the show, and with good reason: Facebook (FB) and Starbucks (SBUX) reported earnings. Panelists also discussed gold.
We’ve owned Starbucks since 2009 – but there is no reason to own it here. Growth is slowing and it’s going to get more expensive for SBUX as a company as sales slow. This coincides with our #GrowthSlowing macro theme.
The gold case is that Bernanke will retain his job, Draghi will continue what he wants to do. If the US dollar continues to strengthen and gold continues to make lower highs, gold will continue to drop. Pawn shops have felt the heat (CSH, EZPW) from this: lower prices and volumes and gold are putting a squeeze on their earnings.