CLIENT TALKING POINTS
Yen
Heli-Ben $$ hits a wall with Kuroda saying “no need or possibility for helicopter money” – doesn’t that suck. Reiterating short Nikkei as the Yen just popped +1.1% on that after failing to break-down through 108 vs. USD.
Italy
Protracted recession pending in Europe? What’s the catalyst to get Italy, France, etc. out of one? Reiterating the short call on both European Equities (Germany, Spain, and Italy… in that order) and the Euro vs. USD (Italian stocks haven’t joined the helicopter party, -0.3% this am and -30% vs. where you could have bought them at this time last year),
Volume
No all-time highs for Nasdaq or Russell, but we’ve got another one for SPY beta, baby! And … volume continues to crash into these consecutive highs. Yesterday’s Total US Equity Volume (including dark pool) was -17% and -22% vs. its 1-month and 1-year avg volume, respectively.
TOP LONG IDEAS
GLD
Gold (GLD) = Protection from global currency devaluation and inflation/down USD – You can travel anywhere on earth and get a quote in local currency.
TLT
Long Bonds (TLT) = #GrowthSlowing, yield curve compression.
TIP
Treasury Inflation-Protected Securities (TIP) = Combination of the above exposures.
Asset Allocation
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 7/20/16 | 53% | 0% | 2% | 13% | 24% | 8% |
| 7/21/16 | 60% | 0% | 3% | 14% | 17% | 6% |
Asset Allocation as a % of Max Preferred Exposure
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 7/20/16 | 53% | 0% | 6% | 39% | 73% | 24% |
| 7/21/16 | 60% | 0% | 9% | 42% | 52% | 18% |
THREE FOR THE ROAD
TWEET OF THE DAY
NEW GUY! Tech Research Veteran Ami Joseph Joins Hedgeye app.hedgeye.com/insights/52471
@KeithMcCullough
QUOTE OF THE DAY
“Great acts are made up of small deeds.”
–Lao Tzu
STAT OF THE DAY
Pedro Martinez had a career record of 219-100.
