CHART OF THE DAY: Are You Short Global Cyclicals?

01/11/19 09:09AM EST

 Editor's Note: Below is a chart and excerpt from today's Early Look written by Hedgeye Senior Macro Analyst Darius Dale.

CHART OF THE DAY: Are You Short Global Cyclicals? - z22

Drawing from the Mandelbrot quote above, this morning’s European economic data led me down a rabbit hole of analyzing, quantifying, and manipulating repeatable patterns that have been developing since Germany released its November Industrial Production statistics on Tuesday:

Thoughts (to myself):

  1. “Hmm. All of the major economies in Europe have crashing/negative Industrial Production growth.”
  2. “Yikes.”

Questions (to myself):

  1. “Does this matter?”
  2. “What is the likelihood that this pattern develops into a trend?”

CHART OF THE DAY: Are You Short Global Cyclicals? - Chart of the Day

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