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.
"... The real monsters that have been hammering Consensus Macro in 2016 are as follows:
- #Deflation (China, Oil, EM, etc.)
- US #GrowthSlowing from its Super #LateCycle peak
- Illiquidity & Leverage
Unfortunately, Illiquidity (institutional investors can’t get out of small/mid cap equity and junk bond exposures) and Leverage (hedge funds running 150-250% “gross long”, growth slowing companies like IBM levering up to buy back stock, the largest $ amount of corporate credit outstanding in human history, etc.), wasn’t objectively discussed @Davos."