On today's Macro Overlay, Hedgeye CEO Keith McCullough provides an update on our GIP model (Growth, Inflation, Policy). This predictive tracking algorithm suggests U.S. economic growth and inflation are both accelerating in the fourth quarter.
McCullough explains why investors should be "long higher beta, small cap stocks, particularly U.S. domestic stocks" in this environment while staying away from #GrowthSlowing exposures like bonds and gold.
McCullough contextualizes what it all means for "our #1 Macro idea" right now, the U.S. Dollar (which is already up about 8% in the fourth quarter) and reviews similar #StrongDollar periods under Presidents Ronald Reagan (1) and Bill Clinton (1993 to 1999).
Enjoy! And happy holidays to you and your loved ones.
