|
Below is a brief excerpt transcribed from Tuesday's edition of The Macro Show hosted by Hedgeye CEO Keith McCullough. |
Japan was really a wake up call last night because you had confirmation from both the Quad and my market signal.
Those two things at the same time, when combined with what happened with the S&P 500 are quite interesting.
We call these in fractal math a “similar set.” They’re causal when they are happening together.
You can see Japan crashed to the lows in March and had one of those “V-Shaped recoveries" that now look like a hacked up “W.” It made a big lower high versus not only the June high but also on the economic data.
The Japanese Household Spending (in Red) was down -16.2% on YoY basis. That was down! It’s worse in May from where it was in April.
That’s not a V! If it is a V, it’s an upside down one.
Study central market planning (from the BOJ, to the BOE, to the Fed). The whole promise that it’s "Good for the economy" is complete bullsh*t. Ask the Japanese.
It hasn’t done anything and they’ve even bought stocks. Understand that it’s good for markets in the short term. However, it’s done nothing for the Japanese economy over the intermediate to long term.
The cycle and economic gravity absolutely matters within that lens.
