Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
Your performance from yesterday is, therefore you are. No matter what you thought could or should happen, that’s what happened. Now you have to deal with making the next best position, timing, and sizing decisions you can today.
Top down, being long Commodities, Treasuries, and Tech all generated plenty of Full Investing Cycle alpha yesterday. Bottom up, my analysts had our subscribers in names like Zoom (ZM), Nautilus (NLS), and Chewy (CHWY). Those worked too.
On the “names”, there are plenty of useless opinions out there on what “valuation makes sense.” They think, therefore they might “feel” intellectual. I think whoever scores more than the other team wins The Game.
Valuation isn’t a catalyst. It’s an opinion. The ROCs (rates of change) and returns are facts.