Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
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I know, I know. Hopefully your competition has Macro Tourism at the core of their “process”, and totally missed that last point. If you didn’t know that the most important US economic data of the day was LABOR UP, PRODUCTIVITY DOWN, now you know. Here’s Quadzilla’s (Darius Dale’s) more specific update on that: A) Yesterday’s Unit Labor Costs (+20bps to 2.2% YoY in 3Q19; fastest since 1Q18) and Nonfarm Productivity (-30bps to 1.5% YoY in 3Q19; slowest since 4Q18) data confirmed what we already knew…B) US corporations are seeing their operating margins erode at an accelerating rate. Investors who expect that to ameliorate itself due to Fed easing or, worse, automatically, are in for a real treat in 1H20E. C) The utter collapse in Japanese economic growth here in 4Q19E continues unabated with the Q4 BSI survey data. The headline index crashed -7.3pts to -6.2, which represents the worst print since JUN ’16. |
