(Excerpt from this morning's Hedgeye conference call)
Our ongoing trade remains #shortfear.
People have been too bearish. Check out the latest “Bull/Bear Survey.” The nominal level of people who will admit they are bullish is extraordinarily low for the market move we are in. Only 52% admit they are bullish. And yet, the market continues plowing ahead despite the pessimism.
The negativity doesn’t reconcile with recent economic data, notably yesterday’s consumer confidence number which not only surprised people short equities, but those long bonds. Look, the same problem that people have being long bonds, is the same problem people have being short equities: They are too bearish on growth. We’ll say that until we’re blue in the face.
It’s also worth mentioning that there our Macro Team assumed a lot of risk sticking our neck out and going long the #GrowthAccelerating theme earlier this year well ahead of consensus. But we nailed it. Bond yields certainly agree with our call, stocks agree, and the USD agrees.
Bottom line: We continue to buy the dips.