Way too many investors fall prey to it. They get caught up in what they think the market should do, instead of analyzing what it’s actually doing.
A subscriber recently asked CEO Keith McCullough on The Macro Show about whether he’s concerned about “very smart people” who are warning that if the Fed raises rates it could “seriously damage the markets.”
“I literally don’t care what very smart people think,” McCullough says in the above video.
“There’s a much smarter thing out there and it’s not even human. I call him Mr. Market. That’s the far smarter macro strategist, economist and risk manager that you should be paying attention to every day.”
Our quantitative risk ranges are far more accurate than these qualitative opinions. Our risk ranges incorporate what the market is signaling about price, volume and volatility to suggest an asset’s probable trading range for the day and across durations. With the 10-year yield in a bullish trend, investors simply need to look at the fundamental data confirming it (reflation, real GDP, and profit data).
“You just have this beautiful setup for the 10-year [to go higher,]” McCullough says. “This is why people are so angry about the potential move higher in interest rates.”
Watch the above video for more.