"This is purely a portfolio manager’s call from a Factor Exposure perspective," writes CEO Keith McCullough. "I don’t want to be short either Consumer Staples or Low Beta as the US economy heads towards what we call Quad 4 in Q4. That’s when the rate of change in growth and inflation are slowing, at the same time."
Below is our risk management framework for our Growth, Inflation, Policy model laying out what works and doesn't work historically in each of the four quadrants. As you can see Consumer Staples is an equity sector overweight in #Quad4. (Click here to watch a video explaining our GIP Model.)
***No change to Restaurants analyst Howard Penney's fundamental short thesis on McDonald's (MCD). Click here to read our analyst's original report.
