Editor's Note: Below is a brief excerpt from the Early Look written by CEO Keith McCullough. Click here to learn more about the Early Look.
One of my favorite new one-liners to use on 2017 US Growth Bears is “if the Nasdaq wasn’t getting more expensive, I wouldn’t like it.”
To a “value” guy or gal who wasn’t long the obvious intermediate-term @Hedgeye TRENDs of US GDP, Profit, or Capex #GrowthAccelerating, my comment must sound irrational. Using my rate of change process, it’s perfectly rational.
If “expensive growth” asset allocations, style factors, and market exposures weren’t getting more expensive, Mr. Market wouldn’t be confirming my data dependent view. (*Hint: when “growth” multiples compress and crash, growth is slowing)
Btw, I have no problem buying value and shorting growth. I’ll let you know when we start making that call.
