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Editor's Note: Below is a brief excerpt and chart from today's Early Look written by Hedgeye CEO Keith McCullough. Click here to learn more about the Early Look.

What if consensus being concerned that “it’s all priced in” is all priced in? Oh boy, from Friday’s all-time SPY high wouldn’t that be a shocker. It certainly was for those who didn’t understand the risks associated with Quad 4 in Q4 of 2018

I get it. The performance pressure out there is surreal. Back when I started as an analyst at a hedge fund in 2000, we used to have a marketing slide showing our performance’s correlation to US Equity Beta (i.e. to what the market is doing) at 0.3. 

Today, depending on what swath of the over-supplied mutual and hedge fund universe you’re looking at, that correlation is closer to 0.8-0.9. Reality is that consensus PMs chase high and freak-out (sell) lower. They don’t do The Quads.

CHART OF THE DAY: Is It All Priced In? - Chart of the Day