FLASHBACK: Hedgeye's Keith McCullough Warns About the Return of Deflation In This 2-Minute Video

Takeaway: #Quad4 is one of the most important macro trends we have identified for the quarter.

FLASHBACK: Hedgeye's Keith McCullough Warns About the Return of Deflation In This 2-Minute Video - 45

 

Before formally introducing #Quad4 as one of our top Q4 macro themes, Hedgeye CEO Keith McCullough explained during an institutional call in September why we were likely heading into Quadrant 4 of his model. That’s when both growth and inflation slow.

 

For the record, during this call McCullough also advised getting long Utilities (XLU) which is up well over 6% since this video first aired, versus the S&P 500 which is down -1%.

#Quad4 is one of Hedgeye's Q4 2014 Macro Themes. In other words, it's one of the most important macro trends our macro team has identified for the quarter.

  • · #Quad4: Our models are forecasting a continued slowing in the pace of domestic economic growth, as well as a further deceleration in inflation here in Q4. The confluence of these two events is likely to perpetuate a rise in volatility across asset classes as broad-based expectations for a robust economic recovery and tighter monetary policy are met with bearish data that is counter to the consensus narrative.

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Premium insight

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President Donald Trump's economic team unveiled what he called last week, "the biggest tax cut we’ve ever had.” Before you get too excited about that hang on a sec. "Trump Tax Reform ain’t gettin’ done anytime soon," Hedgeye CEO Keith McCullough wrote in today's Early Look.

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