Below is a brief note from Hedgeye CEO Keith McCullough explaining why we are adding the British Pound (FXB) to the long side of Investing Ideas today:
"Post another ‘making America great again’ US Consumer Confidence reading today (University of Michigan 98 vs. 93.8 last), whoever didn't make the #TrumpTrade pivot, 2, 3 (going on 4-5) weeks ago is forced to chase it now.
Dollar Up, Rates Up, Stocks Up - on Data Up!
As a result of #StrongDollar, the British Pound has sold off this week. That's developing into our 2nd favorite Global Currency so I'm a buyer of it (especially vs. the Euro if you can do it that way) on pullbacks to the low-end of my risk range.
The reasons for this are many, and we'll host a call on it for Institutional Investors soon... but net, net, net, we see both the strength of UK growth and inflation data supporting a hawkish pivot from BOE Governor Carney.
While not many central bankers are allowed to "get" what a Strong Currency does for the purchasing power of The People. The former Harvard Hockey Goalie (Carney) does."
