Editor's Note: Below is a brief excerpt from the Early Look written by Hedgeye Managing Director Tom Tobin. Click here to learn more.

Fundamental analysis is already extremely difficult, but made harder by volatility that is just as likely to ignore your diligent research as make you look like a genius.  The simplicity of Full Cycle Investing and applying the Quads can take fundamental analysis to new heights, but one’s ego must make a fresh low.  

In today's Charts of the Day below, we first show that the year over year percentage change in Real GDP has little to no effect of the Quantity Index for Health Care Personal Consumption Expenditure, a decent proxy for utilization.  However, when we look at the sequential change, or through the lens of the Quads, the relationship tightens dramatically.  Slowing or accelerating is all that matters.

CHART OF THE DAY: Health Care Quads & Style Factors - COD1