Our Macro team has been calling for growth and inflation to slow in the U.S. economy (what we call “Quad 4”) since the end of September. In a nutshell, Quad 4 means a rough investing road ahead for many parts of the major stock indices, with one notable exception:
Housing.
Hedgeye Housing analyst Josh Steiner explains in the clip above why this particular macro environment actually is bullish for the sector.
“What this means is that the Fed is shifting from being very forward-leaning in its seat to sitting back and surveying the situation,” Steiner explains.
“That’s exactly what we’ve seen over the course of the fourth quarter and as we’ve rolled into the first quarter. The rate environment should remain favorable…so generally Quad 4 is a very good environment for housing equity performance.”
Watch the full clip above for more.
