Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
During #Quad3 I want to be long INFLATION ACCELERATING, not the bloated cost structures of companies that:
A) Continue to see LABOR costs ramp to new cycle peaks … and
To be clear, no cycle peak is the same… but some of them certainly have what fractal math fans call Similar Sets. The combination of US COSTS (inflation) rising and REVENUES slowing is very OCT 2007. I don’t have to make the 2008 “call” again to see that in my notebooks. Google it.