• Bull.

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Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.

CHART OF THE DAY: Cross-Asset Volatility vs. Complacency  - CN7GwKSUkAAhnz7

I know, plenty of “capitalists” and socialists alike are begging for both corporate and “fiscal” bailouts. And heck, we might get them. But we might get more volatility in the US Treasury and Credit markets before that takes hold. Mnuchin is already panicking with a Paulson sized bazooka!

As you’ll recall how this worked in 2008:

  1. Treasury Bond Yields bottomed in March, then proceeded to rise from there until October (then they crashed, again, from there)
  2. Gold peaked in February/March of 2008, in conjunction with that… and
  3. HY Spreads continued to widen alongside the MOVE moving out, no matter what The Fed and Congress did

Today, all of that volatility, across asset classes, is starting to move at a faster rate. Gold Volatility > 41 and heading towards 51? Oil Volatility is at 130 and knocking out RECORD highs, daily! In Global Macro terms, that’s worse than 1987.

CHART OF THE DAY: Cross-Asset Volatility vs. Complacency  - Chart of the Day