Why We Removed BofA From Our Best Ideas List (Plus 3 New Ideas) | $BAC $COF $OZM $LM
Hedgeye Financials co-heads Josh Steiner and Jonathan Castelyn discuss why they took Bank of America off their Best Ideas list on Thursday and offer up three other long ideas.
Q&A: McCullough Answers Questions on Gas Prices and the Fed
Hedgeye CEO Keith McCullough answers two critical questions from institutional subscribers.
McCullough: The Return of Deflation?
Hedgeye CEO Keith McCullough explains during Thursday’s institutional call why we might be heading into Quadrant 4 of his model. That’s when both growth and inflation slow. Here’s how to position yourself.
On the spectrum of dovish vs. hawkish (versus expectations), this Fed statement was as dovish as it gets says CEO Keith McCullough.
Angels & Demons
47% of Nasdaq stocks and 41% of stocks in the Russell 2000 are crashing from their 12-month peak. The long bond? It's up +12% YTD.
In rate of change terms, the +10.1% week-over-week move in front month US Equity volatility (VIX) was peanuts compared to the % move in volatility in foreign currency and fixed income. That’s what happens when the Fed suppresses volatility to all time lows. The bubble peaks.
If we’re right and we’re set up for one of the most asymmetric moves in volatility ever (see our Q3 Macro Theme deck titled #VolatilityAsymmetry), Americans may be looking back at late 2007 a lot faster than they think.
Has Central Planning Reached Its Crescendo?
Cracks Remain Across Europe
As the ugly equation of declining growth + high unemployment + low and deflating inflation comes home to roost, the ECB’s newest response is to lever up its balance sheet (ECB President Mario Draghi has indicated the willingness to increase it by €1Trillion) and extend QE as the “elixir” to inflect weak and declining fundamentals across the region.
POLL OF THE DAY
On Monday, we asked our viewers about the significance of the Alibaba IPO .
On Tuesday, as the Fed kicked off a two-day meeting, we asked our viewers about their expectations from that meeting. Here's what they told us.