A viewer asked Hedgeye CEO Keith McCullough on our inaugural Mega Market Trends webcast his thoughts on how the current shorting opportunity in the market compares to previous setups in 2001 and 2008.
McCullough explains that while there are some similarities to prior cycles, each economic cycle is different. Currently, one key factor could make the next downturn very different.
“The biggest corporate credit bubble in the history of America - $8 trillion in corporate credit - is about to go for sale and you can’t get out,” McCullough explains in the clip above.
“That shouldn’t sound like anything, because we haven’t had that happen before. Every economic cycle is different and there’s always an imbalance somewhere. What’s going to happen? I don’t know, but I’m not going to be long it, that’s for damn sure.”