Reality check. Betting on monetary stimulus from the Fed is a bad idea. Try as they may, central bankers can’t bend and smooth economic reality.
As Hedgeye CEO Keith McCullough explains to a new subscriber on The Macro Show, our model is designed to front-run policy, not react to it.
“Because a policy maker is going dovish, doesn’t mean that growth and inflation re-accelerate,” McCullough explains.
“Money supply doesn’t make the world go round entirely. Growth and inflation are the two most causal factors across asset class returns, factor exposures, and sector styles going back to the beginning of time.”
Watch the clip above for more.
