6 Picture-Perfect Cartoons Capture Breakdown In Central Planning #BeliefSystem

Takeaway: Below are six cartoons illustrating our latest thinking on the central planning #BeliefSystem.

Our quarterly macro themes form the bedrock of our Macro team's investment conclusions. One of our most recent macro themes is the crashing central planning #BeliefSystem, in which investors lose faith in the policies of central banking bureaucrats.


The notion that central bankers are increasingly pushing on a string is being progressively priced into global financial markets...


6 Picture-Perfect Cartoons Capture Breakdown In Central Planning #BeliefSystem - Central bankers in corner cartoon 04.20.2016 


... With one lone holdout: U.S. equities.


6 Picture-Perfect Cartoons Capture Breakdown In Central Planning #BeliefSystem - Easy money cartoon 04.28.2016


While we admire the blind faith of domestic stock market operators in Yellen’s ability to keep “the game” going...


6 Picture-Perfect Cartoons Capture Breakdown In Central Planning #BeliefSystem - Yellen cartoon 03.31.2016 


... We are keen to cite specific risks that marginally dovish policy in the U.S. will fail to overcome the depths of the domestic economic, credit and corporate profit cycles.


6 Picture-Perfect Cartoons Capture Breakdown In Central Planning #BeliefSystem - hour glass cartoon


The #BeliefSystem breakdown is already happening in Europe and Japan, with respective equity markets in crash mode and currencies strengthening despite easy money policies. 


6 Picture-Perfect Cartoons Capture Breakdown In Central Planning #BeliefSystem - Draghi Peter Pan cartoon 04.13.2016


It's just a matter of time before investors loose faith in Yellen & Co. too.


6 Picture-Perfect Cartoons Capture Breakdown In Central Planning #BeliefSystem - central bank cartoon 04.22.2016

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