Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
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If you’re going to be long a peso and short a peso, stay with Long Mexico vs. Short MMT Argentina. You know the US Dollar Devaluation story of a pending Biden COVID stimulus plan is big when Mexico’s currency is this bullish! Down Dollar = a higher cost of living for The People who are paid in Burning Bucks. If the only thing those people you know do is US stocks, Long Inflating Energy Stocks (XLE) is where it’s at, baby! Give your friends some Hedgeye Small Cap de-SPAC “picks” (MP and EOSE) with that turkey too! Being long Energy (XLE) wasn’t like being long Lumber (+33.4%) last week, but it certainly paid the bills at +5.9% on the week and +19.8% in the last month. Consider the alternative to being Macro Unaware that Real Rates Rise alongside #InflationAccelerating during #Quad2. Those are the people who stayed long Gold which was down -1.0% last week and is down -1.9% in the last month. For everyone, re-learning what goes up/down in each Quad is a process of discovery. |
