CHART OF THE DAY: Largest Asset Allocation: #Patience

07/20/20 07:44AM EDT

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

Of course, after 4 consecutive weeks of the beloved Fed (and Fiscal Spenders) Devaluing the US Dollar, consensus is both short of it and chasing its short-term inverse correlations:

  1. 15-day inverse correlation between USD and SPY is -0.93!
  2. 15-day inverse correlation between USD and Commodities (CRB Index) is -0.92!
  3. 15-day inverse correlation between USD and Gold is -0.91!

I’m using Pump exclamation marks because those are extremely high inverse-correlations that eventually mean revert. In other words, they’ll have short-term Counter @Hedgeye TREND moves that catch consensus off-sides, all at once.

CHART OF THE DAY: Largest Asset Allocation: #Patience - Chart of the Day

© 2024 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.