Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
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As a reminder, this morning’s short-term, Fed (and Fiscal Deficit Spending) fueled, US Dollar Devaluation (read: print money and inflate the Old Wall’s assets) correlations are:
Now if you want to tell me that PE Powell doesn’t understand The Machine of the modern day market and why 1-month price momentum, correlations, etc. matter, then fine… But that only amplifies my point. Whether the Fed is knowingly obfuscating the truth about its Macro market impact or it is willfully blind doesn’t matter at this point. The People get what being lied to means. What PE Powell didn’t lie about yesterday was The ROC (rate of change) of the US economy here in July. He, said “the pace of the recovery has slowed.” He didn’t talk about how the pace of Dollar Devaluation perpetuated the stagflation part of that. |
