Below is a chart and brief excerpts from today's Early Look written by Hedgeye CEO Keith McCullough.
Other than Wall Street calendar year-end (“year to date”) compensation counting, what does the YTD really mean to someone like me who has a Full Cycle Investing & Risk Management #process?
A: not a lot
What matters to the compounding of our net wealth is allocating to new:A) Asset Classes
B) Sector Styles … and
C) Factor Exposures
At the Quad (or cycle) Turns. The simplest recent example of that was going from short (or underweight) Commodities and Energy Stocks to long of them 3 months ago when our cyclical call on INFLATION went from bearish to bullish.
There was no start of 2019 or “year-to-date” consideration in that “call.” If you get The Cycle turns right, you won’t get the draw-downs wrong (like those who were Long US Dollars and Short Commodities & Energy Stocks did in December).