Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
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Timing matters. And it especially matters on the short side. It’s one thing to not get levered long pro-cyclically. It requires an entirely different risk management #process to start making asymmetric bets on the short side of cyclical asset classes and sector exposures. Alongside shorting Private Equity (PSP) here (and being long it from The Cycle low of 2016 to the peak of the US Profit Cycle in Q3 of 2018), we recently added Short Consumer Staples (XLP) to our Best Ideas list for Global Macro investors who can be long and short. On the other side of that, we added Long Energy (XLE). Both cyclical bets are based on #InflationAccelerating. |
