Below is a brief excerpt transcribed from Monday's edition of The Macro Show hosted by Hedgeye CEO Keith McCullough.
Want to talk about oil? Talk about crashes!
It was down almost 20% last week. WTI is obviously crashing again this morning. You had the biggest moves in terms of contango, or at least one of the biggest moves ever.
Isn’t it an amazing thing how gravity wins when the Federal Reserve isn't buying? The Fed is bailing out their cronies in Junk bond debt or super late cycle bad investments, which would include crappy credits and levered equities.
A lot of people say “Don’t fight the Fed.” We’re of course long Treasuries alongside the Fed, so we’re not fighting them there. But we’re fighting them in a lot of different places. These are all big problems.
Don’t forget immediate term downside in the low end of the risk range for WTI today. No, I’m not buying it. It is deep #Quad4 at its core. Don’t forget Quad 4 is defined as growth and inflation slowing at the same time.
In Deep Quad 4 you don't touch Oil.
