CHART OF THE DAY: Valuation Is Not a Macro Catalyst

01/02/19 08:03AM EST

Editor's Note: Below is a chart (and excerpt) from today's Early Look written by Hedgeye CEO Keith McCullough.

CHART OF THE DAY: Valuation Is Not a Macro Catalyst - z 55

And no, we’re not buying those sectors because someone might call them “cheap” (on the wrong numbers) this morning. “Valuation” is not a macro catalyst. Accelerations and decelerations in both the economic data and our market signals are.

If you had a great 2018, you obviously have an evolved data-driven process and get that. If you’re new to subscribing to our process and haven’t implemented that risk management overlay into what it is that you do, you should. Timing matters.

So let’s start 2019 doing the standard @Hedgeye A/B test:

  1. What’s the economic data doing (in rate of change terms) this morning?
  2. What’s the multi-duration @Hedgeye TRADE, TREND, TAIL signal saying in kind?

CHART OF THE DAY: Valuation Is Not a Macro Catalyst - Chart of the Day

© 2024 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.