Our macro team authored the bearish thesis on China and Emerging Markets back in January 2018.
A core component to the view was a persistent steepening of comparative base effects for key drivers of global growth as far as the eye can see. It’s highly unlikely that Beijing has done enough to surmount the “Big Kahuna” here in 1Q19E.
In other words, investors would be wise to prepare for (more) bearish headline risk ahead in China.
In the clip above from a recent edition of The Macro Show, Hedgeye Senior Macro analyst Darius Dale walks subscribers through why this is the case.
