Editor's Note: Below is a brief excerpt from this week's edition of Market Edges, our weekly newsletter of big picture, investable insights. Click here to learn more about Market Edges.
Economic growth in Japan and the Eurozone just hit multi-year lows. Data out of China continues to slow. Cracks are showing in recently reported U.S. Industrial Production and Retail Sales data. Not good.
- Japanese Real GDP growth decelerated -110bps to 0.3% YoY – the slowest pace of growth since 1Q15;
- German Real GDP growth decelerated -90bps to 1.1% YoY – the slowest pace of growth since 4Q14;
- Eurozone Real GDP growth decelerated -50bps to 1.7% YoY – the slowest pace of growth since 4Q14;
- Japanese Industrial Production growth decelerated -420bps to -2.5% YoY – the slowest pace of growth since JUL ’16; and
- Eurozone Industrial Production growth decelerated -20bps to 0.9% YoY in SEP.
Our call remains that it's only going to get worse from here.
The important question now: when will these equity markets bottom and look investible on the long side again?
Getting ahead of the crowd is a huge part of what makes Hedgeye tick. Our Macro analyst team believes several countries could begin turning the corner into buying opportunities in 2019. But Macro analyst Darius Dale warns investors that there is “still a ton of risk to manage” when it comes to global markets.
“We think the Fed pivoting dovish would put the floor in and around these beleaguered asset classes and markets,” Dale explains in the video below from a recent edition of The Macro Show. “But it’s November 12th. This is definitely an early-to-mid Q1 [2019] event.”
