Editor's Note: Below is a brief excerpt and chart from today's Early Look written by Hedgeye CEO Keith McCullough. Click here to learn more.
"... Last week’s macro market moves simplified that both #Deflation and #GrowthSlowing are bearish TRENDs where you can be LONG:
- USD: US Dollar Index up another +0.4% on the week to $98.95
- Long-term Bonds: US 10yr Treasury Yield down another 8 basis points on the week to 2.03%
- Utilities (XLU) up +0.7% on the week to +0.3% YTD
While the Utes Long Bond Cash Is King position worked, not all “yield chasing” or “growth in a slow-growth environment” did:
- MLP’s got smoked for another -10.7% weekly loss and are already -18.6% YTD on the Alerian MLP ETF
- Financials (XLF) underperformed the SP500 (again) losing another -3.1% on the week to -10.1% YTD
- High Beta (as a US Equity Style Factor) got crushed for another -6.3% weekly loss to -15.3% YTD"