|
Below is a brief excerpt transcribed from Thursday's edition of The Macro Show hosted by Hedgeye CEO Keith McCullough. |
The U.S. Dollar has got it right.
Treasuries got it right.
The entire Bond Markets got it right.
Gold got it right.
They all have it right.
It is an economic lie that you have a jobless recovery. It is total bulls#!t.
This morning 1.4 million jobless claims. The headlines will say things like “It rose for the first time since whenever...”
IT NEVER WENT AWAY!
This is 52.7 million jobless claims in the last 18 weeks. That is the cumulative number.
All these markets get it and if your answer to that is “the stock market went up” because you are dumb enough to accept that, then I guess that’s fine.
There are plenty of things that have been said over the past 6 months that aren’t especially intelligent. Don’t forget there are countries like Argentina and Venezuela that have done this before.
Their stock markets are AWESOME ... in burning currencies. And their people paid the price.
If you don’t get that, then you’re not going to get it anywhere else from me. The dollar remains immediate term trade oversold. That's a big problem if you look at the inverse correlations, particularly if the dollar were to have an up day.
The Fed is hell-bent on making sure the Dollar doesn’t go up.
Looking at Gold, it has a 95% inverse correlation to the U.S. Dollar. Of course it’s going to keep making new highs. The U.S. Dollar has the same inverse correlation with the S&P 500.
Keep your eyes on your fries.
