Excerpt from this morning's Early Look by Keith McCullough:
[B]eing long what we’d define as the “Trump Trade” isn’t working nearly as well as being long real-growth and short reflation has.
As you can see in today’s Chart of The Day (The Hedgeye Macro Team’s “Trump Tracker”), since NOV 8, 2016:
- Cyclicals/Defensives Index is down -3.8%
- Materials (XLB) is down -1.0%
- Steel is down -7.2%
- Base Metals are down -5.6%
- Metals & Miners are down -20.8%
Yep. If you have friends who are not in the 52% of “big cap managers” who are beating their bench so far in 2017 (per the FT yesterday, 63% of “growth managers” are beating theirs too), you should forward them our contact info.
We can help with the problem some PMs have had confusing their politics with investment process. If they thought being “long Trump” meant chasing the cycle high in inflation expectations in FEB-MAR 2017, they thought about this yougely wrong!
