Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
Emerging Markets (EEM) #1 component is the top ranked country in our back-tested Quad model: China.
As you can see in Quadzilla’s (Darius Dale) Chart of The Day (slide 109 in our Q3 Macro Themes deck), China’s Consumer (KWEB) is at the top of the Longs List. It also signals Bullish TREND. Here’s how EM and China did last week:
A) Emerging Market Equities (MSCI) were +3.4% last week and are in a Bearish to Bullish @Hedgeye TREND Phase Transition
Yep, with real world inflation accelerating there are plenty of new pivots Full Investing Cycle investors need to be coached through. Teaching people the difference between US Economic Stagflation and non-V-shaped-expansions will continue to be critical too.