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To help contextualize this morning's market moves around the world, below are insights and analysis from our research and Hedgeye CEO Keith McCullough's Twitter feed.
USA USA!
The Nasdaq and Russell 2000 hit all-time highs yesterday. Here's the deal: Investors are increasingly realizing that the rest of the world is slowing relative to the U.S. growth outlook. Fund flows are coming back to the states. (Equity ETFs had net subscriptions of +$6.1 billion, outpacing the year-to-date weekly average inflow of +$3.2 billion and the 2017 average inflow of +$2.5 billion.)
https://twitter.com/Hedgeye/status/1004691288472674305
https://twitter.com/KeithMcCullough/status/1004651281603063809
https://twitter.com/KeithMcCullough/status/1004659378795008000
#EuropeSlowing
Meanwhile, the outlook in Europe looks grim (despite the Continent's recent equity market bounce). Growth is slowing at the same time as debt, deficits and bad demographic trends (what we call 3D Risk) exacerbate the slowdown.
https://twitter.com/KeithMcCullough/status/1004653381602947073
https://twitter.com/KeithMcCullough/status/1004655962559565825
https://twitter.com/KeithMcCullough/status/1004658299147554816
https://twitter.com/KeithMcCullough/status/1004659521485144064
#ChinaSlowing
The Chinese economy looks equally bad. Look no further than the lower highs in China's Shanghai Comp. The slow growth ripple effects are also hurting Asian Emerging Markets.
https://twitter.com/KeithMcCullough/status/1004654618587131905
https://twitter.com/KeithMcCullough/status/1004655009185845248
BEFORE YOU GO...
Analysts at Hedgeye have been warning about #ChinaSlowing for six months now. With the world’s second-largest economy beginning to slow, it was bound to adversely affect markets in its orbit.
https://twitter.com/KeithMcCullough/status/1004660167219339264
Want to better understand the big picture macro market developments? Get access to our favorite ETF ideas via ETF Pro.
