Amidst the sea of red across global markets this morning, precious few investments are offering investors shelter from the storm. Moreover, ever fewer are actually up for the year. One of those just happens to be our macro team's favorite contrarian idea. It is paying off big.
Long Bonds (TLT)
For the record, the S&P 500 is down 8% year-to-date, while TLT is up 4%.
Here's analysis from Hedgeye CEO Keith McCullough this morning:
"The UST 10YR is punching in at 1.96% this am, doing its job for us (favorite idea is Long the Long Bond) as both #Deflation and #Recession expectations continue to get priced in – Yield Spread (10s/2s) at 114bps hits new cycle lows; staying short the Financials (XLF) as JPM, BAC guidance sounded like the Fed’s (lala land) relative to economic reality."
