Editor's Note: Below is a brief excerpt and chart from today's Early Look written by Hedgeye CEO Keith McCullough. Click here to learn more.
"... 'Bearish positioning' means the 1-year z-score is A) negative and/or B) really negative (i.e. when it’s more negative than a -2.0x). US Dollar and British Pound have 1-year z-scores of -0.8x and -2.5x, respectively, as of last week.
So what the heck does it all mean? At 11 VIX can stocks never go down as long as GDP isn’t greater than 2%, but not less than 1%? How about long-term bonds and their “safe-yield” proxies – is it over for them, but never for high-beta-low-quality?"