Editor's Note: Below is a brief excerpt from Market Edges, our weekly Macro newsletter of big picture investing insights. Click here to learn more about Market Edges.
The U.S. economy accelerated to the fastest pace of growth in 3 years on Friday.
What comes next? U.S. #GrowthSlowing.
That's our contrarian market call and we're sticking to it. Meanwhile, Wall Street consensus maintains a massive short position in Treasury bonds. And is long the S&P 500. That's precisely the opposite of what we are recommending.
We continue to reiterate that U.S. economic growth and inflation will slow (i.e. #Quad4 in our four quadrant Growth, Inflation, Policy model) in 4Q 2018. As our subscribers know, that's why we made the non-consensus short Momentum, High Beta, and US Growth call in late September AHEAD of the market plunge.
How's that working out for our subscribers? You be the judge. Here are some numbers and a key chart:
- HIGH BETA remains one of the worst places to be during #Quad4, down 15.2% in the last month alone
- GROWTH (both SALES and EPS) continues to get pounded by the #Quad4 Hurricane as well
U.S. #GrowthSlowing? Yep.
