In the highlight reel above from The Macro Show this morning, Hedgeye CEO Keith McCullough digs into three things investors should be watching today.
Here’s a taste:
- Raise Cash, Buy This Sector: The sector to buy first on any correction is Financials, within that specifically the company Franklin Resources (BEN).
- Fed Rate Hike = Rates Down, Dollar Down… What’s Next?: Last week’s Fed rate hike news caused bond yields and the dollar to fall. But both remain bullish from an intermediate-term to long-term perspective, McCullough says. “So provided that we’re right on growth, that’s why not only would I be raising cash, I’d be buying dollars today.” Buy the U.S. Dollar (UUP).
- Stay Away From Junk: Junk bonds (JNK) are highly-tethered to oil prices so be careful. “There’s been so much secondary stock and debt to paper over this energy bubble so the reality is there’s an oversupply situation and the trend is bearish,” McCullough says.
