Below are three big, non-consensus calls we've been recommending to our subscribers with brief analysis from Hedgeye CEO Keith McCullough's macro notebook sent to subscribers earlier this morning. They are based on our Macro team's #GrowthSlowing, #Deflation & #LowerForLonger calls.
LONG THE LONG BOND (TLT)
"10yr – UST ticks back down to 1.73% this morning and the call for all-time lows on the long-end of the curve remains firmly intact; best way to be long #GrowthSlowing in US Equity Sector Style terms = Utilities (XLU); best short = Financials (XLF)"
Even with this week's market bounce, plunging 10yr Treasury yields is exactly why our bullish Long Bond (TLT) call is outperforming equities this year.
Long Utilities (XLU)
short Financials (XLF)
Talk about alpha.
Get off the sinking equity ship while you can.
