On a recent episode of The Macro Show, a viewer asked Hedgeye CEO Keith McCullough how style factors are incorporated into our investing process.
McCullough gets into just that in the clip above, explaining that since 90 percent of all trading these days is systematic, it’s absolutely critical to understand style factors in trying to predict how “The Machine” is going to affect markets.
“What I really care about is the interaction between daily and monthly because that’s what the machines really care about,” he explains.
“What the machines are constantly doing is chasing performance.”
Watch the full clip for Keith’s lesson.