INSTANT INSIGHT: Europe Soars On Hopes Of More Cowbell

Takeaway: Relying on unelected central planning bureaucrats to bail out stalling economies is a losing bet.

INSTANT INSIGHT: Europe Soars On Hopes Of More Cowbell - Draghi cartoon 01.20.2015


Nothing like new lows in European PMIs to get the QE-hope party started this morning! 


European bulls are begging for more central market planning QE as Eurozone PMI hit new cycle lows. Check out the bloody red charts below:



... And the recent cliff dive in Eurozone PMI numbers:


Meanwhile, the euro is burning on all the easy money speculation. Here's analysis from Hedgeye CEO Keith McCullough in a note sent to subscribers earlier this morning: 


"The euro is down another -0.6% vs. USD this morning after falling -1.1% last week with the composite Eurozone PMI hitting a 13 month low of 52.7 in FEB; since the risk range is $1.09-1.13, I expect this party to end at $1.09, and Gold to hold $1150"



INSTANT INSIGHT: Europe Soars On Hopes Of More Cowbell - QE cartoon 10.20.2015


Bulls love quantitative easing. They'll accept any justification to send European equities higher, especially if it means admitting that Europe's economy is slowing. Lets put this "bounce" in context:


"The DAX loves Burning Euro, +2.1% on the bounce but still very much in crash mode (-23% from the April 2015 peak when the European economic cycle was peaking); Draghi will have his work cut out for him at the March 10th meeting to break $1.09"



None of this should inspire confidence.


We'd put our money on economic reality (aka growth continuing to slow). Relying on some effervescent hope that un-elected central planning bureaucrats can bailout stalling economies around the world has been a losing bet for some time now. 

Cartoon of the Day: Hard-Headed Bears

How's this for "hard data"? So far, 107 of 497 S&P 500 companies have reported aggregate sales and earnings growth of 4.4% and 13.2% respectively.

read more

Premium insight

McCullough [Uncensored]: When People Say ‘Everyone is Bullish, That’s Bulls@#t’

“You wonder why the performance of the hedge fund indices is so horrendous,” says Hedgeye CEO Keith McCullough, “they’re all doing the same thing, after the market moves. You shouldn’t be paid for that.”

read more

SECTOR SPOTLIGHT Replay | Healthcare Analyst Tom Tobin Today at 2:30PM ET

Tune in to this edition of Sector Spotlight with Healthcare analyst Tom Tobin and Healthcare Policy analyst Emily Evans.

read more

Ouchy!! Wall Street Consensus Hit By Epic Short Squeeze

In the latest example of what not to do with your portfolio, we have Wall Street consensus positioning...

read more

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