The dust has not settled in the battle between Quad 2 and Quad 3.
While the one component these two scenarios share – inflation accelerating – is beginning to manifest, where they differ still remains somewhat fuzzy. Will growth accelerate (Quad 2) or slow (Quad 3) in Q4?
As Hedgeye CEO Keith McCullough explains in the clip above from The Macro Show, the smart approach is to continue watching (and waiting) for incoming economic data. And of course, be long of things that work in both scenarios.
“We’re only going to add the things that work in both Quad 2 and Quad 3 and Energy is the only thing there,” McCullough explains.
So far, the economic data is trending towards Quad 3.
“REITs do not make all-time highs if the market isn’t tilting towards Quad 3. REITs hate Quad 2,” he explains.
Watch the full clip above for more.