• [WEBCAST] Mega Market Trends: Risk Is Rising → Here’s Our Investing Playbook

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Editor's Note: Below is an excerpt from some investing research Keith McCullough sent to subscribers this morning. Click to learn more and subscribe to our Early Look daily market newsletter.

Investing Implications of Crashing Oil - zzool

No bounce for Oil this morning after selling off intraday yesterday with WTI back below $51 with a @Hedgeye Risk Range of $49.64-53.62.

This is one of the biggest headwinds to both inflation expectations and US Treasury Yields as consensus remains on the wrong side of our Long Treasuries asset allocation.

Not surprisingly, given Oil’s crash (-33.5% since OCT), Energy Stocks (XLE) are one of the worst places to have your money during Quad 4 at -16.7% in Q4.

Financials (XLF) is another way to play our Bearish call on Bond Yields and Yield Curve compression (XLF -10.2% in Q4) vs. one of our favorite longs, Utilities (XLU) up another +0.2% yesterday to +7.5% in Q4.