Below is a brief excerpt transcribed from Wednesday's edition of The Macro Show hosted by Hedgeye CEO Keith McCullough.
It’s time to be in on Quad 4.
Many of you are already positioned in components of the Quad 4 portfolio, because of similarities between Quad 3, with the primary overlap between the two being growth slowing. You're doing just fine obviously being long Gold, Utilities, REITs, Treasuries, and TIPs in both Quads.
What I’d now be doing in Quad 4 is start selling some of that TIPS exposure and booking some gains, like you did with Energy stocks and Oil throughout October, November, December, and the early parts of January (we sold some on the Iranian news), until you got hurt here in the latter part of January.
With the move to Quad 4, I’m not going to be long Energy, or Tech anymore. I’m going to be long of Quad 4. You can see the Quad 4 asset allocations here. This is the #1 process slide we have and I suggest you gravitate towards there.
If you’re scared to take small losses, large losses, or any loss, you will have to deal with that yourself. Because that’s where I’m going as both the US and Chinese economies go into Quad 4 in Q2 of 2020.
