Markets Are Crashing And Wall Street Should Be Ashamed

Takeaway: As equity markets crash, Wall Street credibility is at an all-time low.

Markets Are Crashing And Wall Street Should Be Ashamed - bull drinking 01.08.2016


If you're following Old Wall and its media, you're getting smoked this year. If you're following the non-consensus macro team here at Hedgeye you're not. We called it. That's the reality.


Perma-bull Wall Street credibility is crashing just about as hard as global equity markets...



Meanwhile, back at home, the Russell 2000 is a certified train wreck.



We called all of this back in July. 


So while Wall Street flounders, we've nailed a number of huge macro calls in 2016, like long Utilities (XLU), short Financials (XLF). XLF is down -14.9% versus XLU up +7.5%.



We have been for some time now, the most bullish firm on Wall Street on Long Bonds (TLT). Since we added TLT to Investing Ideas in August 2014, TLT has beat S&P 500 by a wide margin. It's up +16% versus down -4% for the S&P 500.


Talk about alpha.



The market is slowly but surely pricing in the increasingly likely probability of a U.S. recession. That's been our Macro call since the beginning of this year. Until a few weeks ago, no Old Wall economist had even muttered the "R" word, especially from those mainline labor economists at the Fed. That's slowly changing.


One final point on Wall Street. Lying to people about the economy for your own compensation purposes is fundamentally un-American.


Stick with us. This thing Is just getting started.

Cartoon of the Day: Bulls Leading the People

Investors rejoiced as centrist Emmanuel Macron edged out far-right Marine Le Pen in France's election day voting. European equities were up as much as 4.7% on the news.

read more

McCullough: ‘This Crazy Stat Drives Stock Market Bears Nuts’

If you’re short the stock market today, and your boss asks why is the Nasdaq at an all-time high, here’s the only honest answer: So far, Nasdaq company earnings are up 46% year-over-year.

read more

Who's Right? The Stock Market or the Bond Market?

"As I see it, bonds look like they have further to fall, while stocks look tenuous at these levels," writes Peter Atwater, founder of Financial Insyghts.

read more

Poll of the Day: If You Could Have Lunch with One Fed Chair...

What do you think? Cast your vote. Let us know.

read more

Are Millennials Actually Lazy, Narcissists? An Interview with Neil Howe (Part 2)

An interview with Neil Howe on why Boomers and Xers get it all wrong.

read more

6 Charts: The French Election, Nasdaq All-Time Highs & An Earnings Scorecard

We've been telling investors for some time that global growth is picking up, get long stocks.

read more

Another French Revolution?

"Don't be complacent," writes Hedgeye Managing Director Neil Howe. "Tectonic shifts are underway in France. Is there the prospect of the new Sixth Republic? C'est vraiment possible."

read more

Cartoon of the Day: The Trend is Your Friend

"All of the key trending macro data suggests the U.S. economy is accelerating," Hedgeye CEO Keith McCullough says.

read more

A Sneak Peek At Hedgeye's 2017 GDP Estimates

Here's an inside look at our GDP estimates versus Wall Street consensus.

read more

Cartoon of the Day: Green Thumb

So far, 64 of 498 companies in the S&P 500 have reported aggregate sales and earnings growth of 6.1% and 16.8% respectively.

read more

Europe's Battles Against Apple, Google, Innovation & Jobs

"“I am very concerned the E.U. maintains a battle against the American giants while doing everything possible to sustain so-called national champions," writes economist Daniel Lacalle. "Attacking innovation doesn’t create jobs.”

read more

An Open Letter to Pandora Management...

"Please stop leaking information to the press," writes Hedgeye Internet & Media analyst Hesham Shaaban. "You are getting in your own way, and blowing up your shareholders in the process."

read more