• It's Here!

    Etf Pro

    Get the big financial market moves right, bullish or bearish with Hedgeye’s ETF Pro.

  • It's Here

    MARKET EDGES

    Identify global risks and opportunities with essential macro intel using Hedgeye’s Market Edges.

Editor's Note: This comes from a research note Hedgeye CEO Keith McCullough sent to subscribers Friday. If you're serious about stepping up your market game we encourage you to take a look at our offerings.

*  *  *  *  *  *  *

3 Charts - Don't Hike! - Fed cartoon 06.11.2015

While the macro narrative on why bond yields rallied to lower-long-term highs (again) remains malleable, the data is not.

When strategists tell you “inflation is breaking out – so bond yields are going higher,” send them these 3 charts. To be clear, bottoms are processes, not points. And all we’re seeing is a reflation of one mother of a #deflation risk.

If the Fed makes a mistake and raises rates (Dollar Up, Commodities Smoked), they’ll perpetuate #deflation and a corporate profit slow-down in #LateCycle sectors that have already lost pricing power.

KM

  • 1st chart = Headline and Core YoY
  • 2nd chart = Goods vs Services, YoY
  • 3rd Chart = Energy – MoM & YoY

Click to enlarge

3 Charts - Don't Hike! - z 1

3 Charts - Don't Hike! - z 2

3 Charts - Don't Hike! - z 3