Editor's Note: Below is an excerpt from today's Early Look written by Hedgeye CEO Keith McCullough. Click here to get it.
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Have you been increasing your asset allocation to US Dollars (and Cash) while reducing your allocation to Global Equities, Credit, and Currencies that are inversely correlated with USD? That’s what you should be doing when the Global Economy undergoes a @Hedgeye Phase Transition from Quads 1 & 2 towards Quads 3 & 4. As a reminder, in rate of change terms, Quads 3 & 4 both have #GrowthSlowing whereas Quads 1 & 2 have #GrowthAccelerating. Now if you have friends running portfolios who either don’t measure and map the rate of change data deliberately with discipline like we do or know what the “Quads” are to begin with, they might struggle with making these process driven pivots. |
