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

In addition to staying with my Core Asset Allocations to US Treasury Bonds on both the short-end (SHY) and long-end (TLT) of the Treasury Yield Curve, I took Thursday’s correction in “risk off” assets as another buying opportunity in Extended Duration (EDV) Treasury Bonds.

To be clear, there’s a big difference between investing longer-term, across the Full Investing Cycle (we’ve been long Treasuries since Q4 of 2018) and trying to centrally-plan short-term moves in “risk on” assets that have been crashing (like super late-cycle and speculative Credit).

While some were celebrating the commensurate short-term bounce in levered HIGH BETA “stahks” last week, longer-term Full Cycle Investors enjoyed Gold being up another +6.5% on the week to a league leading (for Macro Investors) +14.2% YTD gain.

Not to be confused with -25.3% YTD for Small Cap “Stocks” (Russell 2000, IWM) or -28.4% for IWM since The Cycle peaked in both US GDP & Profit Growth in Q3 of 2018, Gold is up +45.1% since October of 2018. Now that beta and volatility adjusted return is what real bulls are talking about!

CHART OF THE DAY: Investing Due To The Cycle > Investing Due To Fed Liquidity  - Chart of the Day