Hedgeye’s current GDP “Nowcast” for the U.S. economy is signaling a return to Quad 4 (where growth and inflation slow simultaneously) in the second quarter of 2020.

Typically, the market front-runs economic reality before it actually arrives. So, when will it sniff that out?

As Hedgeye CEO Keith McCullough explains in the clip above from The Macro Show, key signs would include oil and treasury yields breaking down and things like utilities and gold breaking out.

“There will be a point where the market says, ‘No más. I don’t want to buy inflation anymore because I see deflation,’” Hedgeye CEO Keith McCullough explains.

“Then the Fed comes and prints money, and rings that epic cowbell they’ve been known to do, and the market will expect them to.”

Watch the full clip above for more.

McCullough: Watch Out For Signs Of Quad 4 - hedgeye risk manager