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We’re not in the hyperbolic, click-baiting business of labeling markets bubbles. That said, certain market components can absolutely look and behave like bubbles.

Hedgeye CEO Keith McCullough recently posed this question in regard to bubbles: “Why do you have the biggest bubble in corporate credit history?”

“You have the all-time lows in credit spreads, pretty much the lowest level of interest rates and access to capital, and you have the all-time high in year-over-year earnings growth fully loaded with tax reform,” McCullough explains on The Macro Show.

“That’s why people felt safe putting leverage upon leverage upon leverage. It’s a bubble.”

McCullough pulls up a key chart and explains why we’re at a really asymmetric point in terms of the credit cycle. “Once the horse leaves the barn on the domestic credit cycle stuff blows up.”

Watch the full clip above for more.

McCullough: 'Biggest Bubble In Corporate Credit History' - the macro show