• It's Coming...

    MARKET EDGES

    Identify global risks and opportunities with essential macro intel using Hedgeye’s Market Edges.

Takeaway: Equity markets in Europe and Japan continue to crash on our Macro team's #GrowthSlowing and #LowerForLonger (rates) calls.

Ugly Growth Reality Plagues Global Equities - Math   Myth cartoon 03.30.2016

A quick look outside the manic, easy-money driven markets in the U.S. illustrates the bearish trends still plaguing equity markets (i.e. our #GrowthSlowing and #LowerForLonger themes). Once we lap the month-end markup in the U.S., the reality that corporate profits nosedived some -10.5% year-over-year and realization that over the coming quarters GDP growth bumps up against the toughest comps of the cycle will start to sink in. 

No. Neither of these realities is bullish for stocks. 

Take a look at how European and Japanese equities are grappling with #GrowthSlowing and #LowerForLonger via analysis from Hedgeye CEO Keith McCullough:

"Europe was flat out ugly for Equity Bulls too – Spain leads losers this morning -1.5% and is in a race with Italian stocks for biggest draw-down from 2015 highs (both -25%!); they’re totally not into the Yellen Dollar Devaluation (Euro Up) thing; #GrowthSlowing in Europe remains our fundamental call there."

 

 

"Unlike the slow-volume squeeze U.S. equity beta had off those crashy FEB lows, Japan really sucked wind throughout Q1. The Nikkei closed down for 3 straight days to end the quarter right back in crash mode (-20% since the bubble highs in Global Equities of July 2015) – we remain bearish (short) Japan and one of its ETF manufacturers (DXJ and WETF)."

 

 

Back in the U.S., we've got ideas about how to play the coming crash. Check out: "Chart of the Day: Our Freshest Idea On The Short Side"