McCullough: How I Built My Wealth Without Huge Drawdowns

In this candid excerpt from The Macro Show, Hedgeye CEO Keith McCullough walks through his own process and history of how he approaches risk managing volatile global markets. “I’m not trying to wax philosophically,” says McCullough. “I’m just telling you there’s a huge difference in volatility adjusted returns, and building your wealth without huge drawdowns.” He’s joined by Senior Macro Analyst Darius Dale who offers additional perspective on the subject. 



Subscribe to The Macro Show today for access to this and all other episodes. 


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This Week In Hedgeye Cartoons

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. Insulted (8/26/2016)

This Week In Hedgeye Cartoons - Jackson Hole cartoon 08.26.2016 

Enough with all the talk of Jackson Hole already.


2. Fed-Induced Hyperventilation (8/25/2016)

This Week In Hedgeye Cartoons - Jackson Hole cartoon 08.25.2016


The epidemic that's sweeping over Wall Street has been officially dubbed by physicians, "Fed-Induced Hyperventilation."


3. Freezing? (8/24/2016)

This Week In Hedgeye Cartoons - OPEC cartoon 08.24.2016


Oil prices popped yesterday on rumors that Iran might support an OPEC oil production freeze. "In our view it is still too soon for any change in OPEC production policy," Hedgeye Potomac Senior Energy analyst Joe McMonigle wrote yesterday. Shortly thereafter, a spokesman for the Iranian Oil ministry said the country hadn't even decided whether to attend OPEC talks next month. Oil prices quickly faded and are down almost -3% today. 


4. "Rarified" (8/23/2016)

This Week In Hedgeye Cartoons - No volume cartoon 08.23.2016


Total equity market volume continues to tumble on up days and rip on down days.


5. The Fed Game (8/22/2016)

This Week In Hedgeye Cartoons - Fed cartoon 08.22.2016


Year-to-date Fed policy:


Hawkish DEC

Dovish MAR

Hawkish MAY

Dovish JUNE

Hawkish JULY


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Cartoon of the Day: Insulted

Cartoon of the Day: Insulted - Jackson Hole cartoon 08.26.2016


Enough with all the talk of Jackson Hole already.


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Taylor: Heat Rising In ‘Historic’ Trump vs. Clinton Slugfest

Hedgeye Chief Political Strategist JT Taylor walks through some of the key factors and developments in the fiery 2016 Election battle between Hillary Clinton and Donald Trump.


Fed Rate Hike? Remember, Remember The 15th of December

Takeaway: Rate hike fears are crushing Bond Bears.

Fed Rate Hike? Remember, Remember The 15th of December - 10yr yield 8 26


Do you remember what happened when the Fed hiked interest rates on December 15th?


10-year Treasury Yield:


12/15/2015: 2.27%

8/26/2016: 1.54%


So yields are falling despite all the rate hike talk...



Here's what you need to know about a potential Fed rate hike via Hedgeye CEO Keith McCullough on The Macro Show yesterday:


Is Janet Yellen The Modern Day Oracle of Delphi?

Is Janet Yellen The Modern Day Oracle of Delphi? - oracle


Wall Street likens Fed head Janet Yellen to the all knowing Oracle of Delphi. So who exactly is the Oracle of Delphi? Via Wikipedia:


"The Pythia commonly known as the Oracle of Delphi, was the name given to the priestess of the Temple of Apollo at Delphi who served as the oracle.


The Pythia was established in the 8th century BC, and was widely credited for her prophecies inspired by being filled by the spirit of the god (or enthusiasmos), in this case Apollo. The Pythian priestess emerged pre-eminent by the end of 7th century BC and would continue to be consulted until the 4th century AD. During this period the Delphic Oracle was the most prestigious and authoritative oracle among the Greeks, and she was without doubt the most powerful woman of the classical world. The oracle is one of the best-documented religious institutions of the classical Greeks. 


The name "Pythia" is derived from Pytho, which in myth was the original name of Delphi. In etymology the Greeks derived this place name from the verb, pythein(πύθειν, "to rot"), which refers to the sickly sweet smell of the decomposition of the body of the monstrous Python after he was slain by Apollo. Pythia was the House of Snakes.


One of the main stories was that the Pythia delivered oracles in a frenzied state induced by vapours rising from a chasm in the rock, and that she spoke gibberish which priests interpreted as the enigmatic prophecies preserved in Greek literature."


Janet Yellen certainly spouts her fair share of economic gibberish. 


***The Fed's rosy economic outlook is undoubtedly pie in the sky. Here's what we think would happen if the Fed raises interest rates... It ain't good.


the macro show

what smart investors watch to win

Hosted by Hedgeye CEO Keith McCullough at 9:00am ET, this special online broadcast offers smart investors and traders of all stripes the sharpest insights and clearest market analysis available on Wall Street.