Our cartoonist Bob Rich captures the tenor on Wall Street every weekday in Hedgeye's widely-acclaimed Cartoon of the Day. Below are his five latest cartoons. We hope you enjoy his humor and wit as filtered through Hedgeye's market insights. (Click here to receive our daily cartoon for free.)
1. Happy April Fools' Day (4/1/2016)
See today's supposedly "bullish" non-farm payroll numbers? Nothing to celebrate. "Remember, whatever the bulls want to characterize as "good" news now = #Fed rate hike," says Hedgeye CEO Keith McCullough.
On a related note, we've got big news.
2. Dysfunction (3/31/2016)
"The Fed is S&P 500 dependent, not data dependent," Hedgeye CEO Keith McCullough wrote recently.
3. Reality Check (3/30/2016)
"Since Q4 ended on December 31st (they haven’t been able to centrally plan a change in the calendar dates yet), has anyone considered why we just saw the worst 6 week start to a stock market year ever? Yep, it’s the Profit vs. Credit Cycle (within the Economic Cycle), stupid," Hedgeye CEO Keith McCullough wrote in a recent Early Look.
4. Whack! (3/29/2016)
Oil is getting knocked around again today, down another -2.4%, despite Fed head Janet Yellen reiterating that declining crude prices are "transitory."
5. Corporate Contraction (3/28/2016)
While U.S. 4Q GDP was revised up to +1.4%, the corporate profit component showed a -10.5% Y/Y contraction. That marks the second consecutive quarter in which corporate profit growth was down Y/Y. Over the past 30 years, two consecutive quarters of shrinking corporate profits have always preceded a material stock market crash.