Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
Need a USA #Quad2 update?A) Look at Commodities (and Oil in particular) making new Cycle Highs yesterday with the CRB Index at 188
B) Look at US Retail Sales #accelerating, big time, from +2.5% y/y in DEC to +7.4% year-over-year in JAN
As you can see in today’s Chart of The Day, that’s an epic #acceleration in one of the biggest US Consumption contributors to #Quad2. Just wait until The Cycle cycles against the MAR and APR COVID comps!
Oh, yes Mr. Linear Econ, The Cycle cycles – and it’s going to go all-non-linear on your Fed Talking Points.
Here’s how one of the greatest team players in Hedgeye history, Dr. (Christian) Drake, depicted the State of US Retail Sales in an Institutional Subscriber research note:
“You knew it was coming. The restlessness was thick, the angst surrounding suppressed domestic consumerism palpable. An intensifying imbalance between consumption capacity and realized spending percolating under a thin veneer of distortive externalities. The Quad 2 juggernaut can’t be stopped, you can only hope to contain it.”
Loved reading that.