Editor's Note: This is an excerpt from a note written earlier this morning by Hedgeye CEO Keith McCullough. If you'd like more information on how you can subscribe to our services click here.
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If you ask Doctor Dollar, Janet Yellen may very well do what we think she should do. That is … stay “data dependent” with no timing on interest rates. That would mean Down Dollar, Down Rates and Up Almost Everything (similar to what I said during our live March 18th FOMC meeting call).
We think both U.S. equity futures (yesterday), and Oil again today are front-running this scenario.
Unfortunately for our friends in Europe (where I happen to be writing this morning) you get #StrongerEuro on this development. And the DAX, CAC (both down -4% in the last month) no likey Down Dollar. It means up Euro.
So we still like long U.S. Equities vs. short EuroStoxx with the Slower-For-Longer (down rates) view.
For now…
