Editor's Note: Below is a brief excerpt transcribed from today's edition of The Macro Show hosted by CEO Keith McCullough. Click here to learn more about The Macro Show.
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Keith McCullough: Did the outlook for Germany change? Look at the stock market there this morning. It’s bouncing more than most. That’s not a huge conceptual surprise. If you actually believed the ‘truce’ that Trump had with the Europeans was going to cause a resurgence in demand, the way people would play the ‘globally synchronized recovery’ is buy Germany. This is quintessential macro tourism. Macro tourists purport to know everything. They jump from headline to headline. But what Hedgeye subscribers do is go time series to time series. It’s the cycle, my friends, that’s helped us make all these calls:
So it’s not Trump or tariffs. That had nothing to do with the calls that we made. So again, stay with the process. |
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McCullough: Final thing. Draghi. We’ve got to talk about Draghi and the ECB’s forecast today. I couldn’t make this up if I tried. He said by the end of the year inflation is going to ‘pick up by the end of the year.’ In our model that is going to be 100% wrong. Our forecast for European inflation hits the lowest levels of the year by the end of the year. So that’s why you pay us because we have a differentiated view. By the way, if the market believed Draghi, the Euro would be up today but isn’t it interesting that the euro isn’t up? |
