Below is a brief excerpt transcribed from Thursday's edition of The Macro Show hosted by Hedgeye CEO Keith McCullough.

McCullough: Understanding Global Divergences  - 7 30 2020 12 57 18 PM

Let’s take a look at some global divergences.

In Japan, the Nikkei was down for the 4th day in a row. If you think that money printing as far as the eye can see, and socializing everything is good forever, that isn’t really the story in Japan.

We have also been harping on France for a while.

Le stocks Françaises” look like a little like “le sh*t.”

Take a look at the chart!

McCullough: Understanding Global Divergences  - 7 30 2020 12 55 33 PM

That’s terrible. Spain was also down almost another 2% this morning as well.

However, on the other side of the coin you have Emerging Markets that continue to climb higher.

Taiwan ramped up +1.8% overnight. It's up +9.5% in the last month. That is one of the emerging markets that we like, alongside Indonesia which was almost up another full +1%.

We also like China and they corrected about 20 basis points.

Divergences are important. Some divergences are doing one thing, while others are reacting and doing the other.

Your goal if you want to make and save money so that you can compound returns is to be long the things going up and short the things going down.