Editor's Note: Below is an excerpt and chart from this morning's Early Look. It was written by Hedgeye CEO Keith McCullough.
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Is Mr. Market front-running what the reported headline inflation data should in the next 2-3 month? Is this Refla’ Ja Vu? For those of you who don’t get my bad jokes, Refla’ Ja Vu is the movie that we’ve seen before. We called it Reflation’s Rollover from MAR-AUG of 2017. It was a risk management view that you got paid nicely via where not to be positioned for 6-7 months. As you can see in the Chart of the Day, Reflation’s Rollover in Q2 of 2017 helped drive REAL GDP GROWTH #Accelerating in both Q2 and Q3 of 2017. Reflation re-accelerating from SEP-DEC subtracted from real GDP growth (the GDP Deflator went up) in Q4 of 2017. |
