Is the Fed tightening into an economic slowdown? That's the latest question macro market consensus is grappling with this year.
For months now, Hedgeye CEO Keith McCullough has been vocalizing his concerns about flagging U.S. growth while Wall Street all but cheered for a Fed rate hike in December.
Watch McCullough Explain our thinking on Fox Business:
Old Wall is now having second thoughts. Here's the latest summation of macro consensus from the Financial Times:
"... The long-awaited rate increase went smoothly, but simmering concerns over China, the global economy as a whole, deflating commodities and financial market valuations have since risen to the fore. Even fund managers that were relaxed about slightly tighter monetary policy last month are now wondering whether that was complacent."
We've been arguing our Macro themes global #GrowthSlowing, #Deflation and #LowerForLonger (rates) for a while now. It appears those realities are slowly dripping into Old Wall consciousness this year, even though we've held them forth for more than 18 months now.
We're happy to keep front-running consensus. Our next big Macro theme: U.S. #Recession. Watch the video below in which McCullough and Senior Macro analyst Darius Dale lay out the call on The Macro Show: