CHART OF THE DAY: #Deflationary Dominoes

12/18/14 08:16AM EST

CHART OF THE DAY: #Deflationary Dominoes - 12.18.14 EL Chart

The following is an excerpt from Hedgeye CEO Keith McCullough's Morning Newsletter today.

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...If you nailed every 50 handle whip-around in spooz perfectly for the last 2 weeks, congratulations. We had a great year here, so send me your docs and I might give you some of my money to manage. If you did not, and stayed the course of patient, dynamic asset allocation:

 

  1. You sold some of your long duration bonds at 2.03% on the 10yr
  2. You bought some #Quad4 US Equity Exposure (Healthcare or Utilities were 1-2 for us this week)
  3. You shorted more Burning Yens and Euros high, against a net long US Dollar FX asset allocation

 

I didn’t have to nail every US stock market move to get that right in our asset allocation model. I just had to have the patience to not buy the November highs in US stocks and/or get shaken out of my Long Bond and US Dollar allocations on the recent November pullbacks...


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