Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
Quadzilla (Darius) is giving me the double-thumbs up on buying more South Korean and Taiwanese Equity exposures this morning (2 of the 3 heaviest weights in the EEM ETF):
A) South Korea’s 4Q19 GDP data confirmed our Quad 2 nowcast for the quarter (+20bps to 2.2% YoY vs. final Hedgeye nowcast of 2.12%). Korean GROWTH has been on a steady uptrend since bottoming in 1Q19 and our comparative base effects model is calling for an acceleration in the rate of change here in 1Q20E
B) Taiwan is another Asian economy our GIP Model has been positive on since its bottom in 1Q19 and the DEC Industrial Production data out of Taipei (+420bps to 5.99% YoY – the fastest RoC since OCT ’18) provides a positive handoff in support of our view that Taiwanese GROWTH should continue to accelerate here in 1Q20