Sorry, kids. A year-end stock “Santa Claus” market rally – much like the aforementioned Kris Kringle – is likely fake news.
With the U.S. economy now in Quad 4 (both growth and inflation slowing), the recent bounces in the markets are just that.
According to Hedgeye CEO Keith McCullough, holding onto something besides the data that shows those conditions is simply a “safety blanket.”
“Quad 4 is the number one thing that matters right now, above and beyond anything that you can think of,” McCullough explains in the clip above. “Santa Claus isn’t real. People want shortcuts. They want somebody to make them feel better. What you really need is to find the sine curve.”
Senior Macro analyst Darius Dale weighs in with his insight as well.
Watch the full clip for more.