Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough
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The further an economy slows from its Cycle Highs, the slower it moves and the longer it takes to complete its Full Investing Cycle orbit. That’s why your Long Gold and Treasuries positions have crushed every other asset class since Q4 of 2018. The more leverage (debt) one puts on either a company or country, the heavier the longer-term problems if and when that country or company continues to see its year-over-year growth rate slow. Neither the Fed nor the Fiscal Establishment (who is trying to buy election votes) agrees with any of that. As you can see in today’s anti-gravity Chart of The Day, they think you solve a leverage problem with moarrr super-late-cycle leverage! That looks like an extraordinarily stupid assumption about The Gravity of Cycles to both the Bond Market and me. |
