"Macro Tourists" continue to discuss President Trump's tariffs, NEC director Gary Cohn's resignation, and the latest accusations of porn star Stormy Daniels. Meanwhile, the more causal factor driving market returns this year is global growth slowing.
"The only strategist with that call other than us is Mr. Macro Market himself," writes Hedgeye CEO Keith McCullough in a note to subscribers this morning. "Whether you look at bearish breakdowns in Nikkei, Hang Seng, KOSPI, DAX, Copper, etc. or European Bond Yields relative to U.S. ones, it’s all manifesting at this point. If either the data or market signals change, we’ll let you know."
Note: All of these trends were in place before President Trump uttered the word "tariffs," Cohn resigned or Daniels' latest Trump impropriety accusation.
Just take a look at global equity market performance...
Japan's Nikkei: -12% Since January Peak
China's Hang Seng: -10% Since January Peak
Germany's DAX: -10% since January Peak