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.
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“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.
