CHART OF THE DAY: Down YoY Earnings Growth = Down Stock Market

Unlike me, who struggles sometimes with backward looking Proctology Macro, both Darius Dale and Christian Drake keep getting better and better at helping clients visualize cycles. I’m really excited to introduce what we call Micro Quads today, for example.

Since my job is also to make The Hedgeye Call and summarize the content, here’s what we’re currently thinking:

1. Recession Stagflation – means going from the sharpest, short-term, Depression in US history… into a Recession
2. Deeep #Pod4 – should ring in Hedgeye Jedi ears like our Deeep #Quad4 call did in January (it’s terrible for earnings)
3. Short USD, Long Commodities, and Long Certain EM – yep, these are disciplined calls that we’ve made many times

In other words, whether you’re “bullish” or “bearish”, there’s a lot to do in terms of Asset Allocation, Sector Style, and Factor Exposure pivots during A) Economic Stagflation and an ongoing B) US Profit Depression.