Don't Live In Fear Of A Fed Rate Cut

07/10/19 03:10PM EDT

Are you living in fear of a Fed rate cut? If you’re following our process here at Hedgeye, you shouldn’t be.

As Senior Macro analyst Darius Dale explains in the clip above, a rate cut – whether it’s in July, August or September – is unlikely to change our outlook on Treasuries (or our other favorite factor exposures) for the time being.

“Why live in fear of a rate cut? We know that it’s a positive thing for the market. It’s better than them not cutting interest rates,” Dale explains during this recent clip from The Macro Show.

“Even if the Fed cuts rates – by 50 basis points for all I care in July – you should be doing nothing different in respect to your relative fixed income and equity overweights and underweights. It’s all about the quads we’re coming from and going to – oh, and by the way, we’re going into an earnings recession that neither Wall Street nor the market has priced in.”

Darius highlights back-tested data to support our view. Watch the full clip for more.

Don't Live In Fear Of A Fed Rate Cut - early look

© 2021 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.