CLIENT TALKING POINTS
USD
Not a good month for the US Dollar (-2.5%) as Trump’s Tweets are now going to go head to head with growth and inflation data (ISMs and Jobs Report up next); for those who missed the 3-6 month run in USD, we think the 97-99 range on the USD Index is a great entry point inasmuch as shorting EUR/USD (again) at 108 would be.
Inflation
Should continue to accelerate as we move through FEB – don’t forget this is one of the easiest “compares” (crashed out lows for Oil, Deflation, etc. last year); CRB Index, Oil, Nat Gas, Ag, etc. all bouncing off the low-end of my immediate-term risk ranges this morning.
VIX
Tough sledding for US Equity Beta Bears – what did a 2-day -0.69% correction get them in the SP500? The Nasdaq only had a 1-day correction from her all-time closing high (Friday) and now we have massive 30-day implied volatility premiums of +38% and +44%, respectively, for SPX and Nasdaq to enjoy as a bull.
Asset Allocation
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 1/31/17 | 30% | 19% | 15% | 13% | 0% | 23% |
| 2/1/17 | 22% | 21% | 17% | 15% | 0% | 25% |
Asset Allocation as a % of Max Preferred Exposure
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 1/31/17 | 30% | 58% | 45% | 39% | 0% | 70% |
| 2/1/17 | 22% | 64% | 52% | 45% | 0% | 76% |
THREE FOR THE ROAD
TWEET OF THE DAY
*Today at 1PM ET Join us! Under Armour CEO Has to Go | Live Q&A w/ Retail Analyst Brian McGough app.hedgeye.com/insights/56978
@HedgeyeRetail
QUOTE OF THE DAY
“The difference between involvement and commitment is like ham and eggs. The chicken is involved; the pig is committed.”
–Martina Navratilova
STAT OF THE DAY
Tevin Coleman of the Atlanta Falcons has 520 yards on 118 carries this season.
