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.
"... ‘Oh, but I’m not buying Utilities, KM. My orthodox theory of finance says to buy “cheap” stocks and sell “expensive” ones.’ Ok, I hear you brother. But expensive just got more expensive and cheap just got cheaper (again).
That’s right too. For the month of SEP, where the call was to fade the rate hike fear:
- Utilities (XLU) are +3.55% for the month-to-date and now leading the league (again) at +17.8% YTD
- Financials (XLF) are down -2.32% for the month-to-date and still the cellar dweller at +0.67% YTD
Don’t be “up 0.67% YTD.” That is not cool."