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Below is a brief excerpt transcribed from Friday's edition of The Macro Show hosted by Hedgeye CEO Keith McCullough.

This Is Going To Force The Next Fed Rate Cut - 07.24.2019 yield curve cartoon  1

Take a look at the chart below.

You can see the 10 Year Yield is revisiting where we went in Quad 4 of 3Q19 which wasn’t so long ago, but it seems some people have forgotten.

Us non-Macro Tourists have a memory because we only really care about the time series of events and how they happen, and what quadrant perpetuates what asset class returns, sectors, and factor exposures.

Recalling that point in time, you also had an inverted yield curve and it forced the Fed to essentially cut interest rates in October.

I think this is going to force the Fed's hand again on a rate cut – we still expect this Rates and #StrongDollar move to front-run the Fed going incrementally dovish, again.

Most people would say “oh you just buy stocks on that anyway.” But we’re really not like that.

We have our own way.

We’re long Consumer Staples (XLP), REITS (VNQ), Utilities (XLU), Treasuries (TLT), and Gold (GLD). And that portfolio as you can see in today's Chart Of The Day, is absolutely crushing it.

This Is Going To Force The Next Fed Rate Cut - 2 21 2020 12 13 25 PM