Right now, consensus positions on Wall Street include being net short U.S. Dollars and Treasuries.
Pop quiz.
Q: What Quad does that mean Wall Street thinks we’re in?
A: Quad 2—where growth and inflation accelerate.
We’ve got bad news for Wall Street – each incremental data point coming in suggests consensus is wrong.
As Hedgeye CEO Keith McCullough explains in the clip above from The Macro Show, the data is pointing to Quad 3. That’s where growth is slowing and inflation accelerates. That means many things Wall Street is positioned for – like basic materials and industrials – could get pancaked.
“The best positions to take advantage of in markets is when the Street is positioned on the other side of you and the data is coming in more probably that [they’re] going to be wrong,” he explains.
Watch the full clip above for more.
