Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
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Them be some damn #StrongQuads climbing them macro mountains! Imagine you had #WeakQuads and you were long something like Gold, which was down another -2.2% last week, taking it to -4.4% in the last 3-months… All of this, of course, is being perpetuated by the proactively predictable breakout in long-term interest rates: A) UST 10yr Yield ramped another +13 basis points last week = +51 basis points in the last 3 months And High Yield OAS Spread continued to collapse, in kind, down another -4 basis points last week to a new Cycle Low of 3.19% (that’s down a big -103 basis points in the last 3-months alone too). But why? Why did the Nikkei go up another +1.7% last week? Why did the yield on a 10yr Mexican Government Bond pop +49 basis points last week alone to 6.08%? Ask The ROC of The Cycle. It doesn’t lie – people without Macro Awareness climbing at these Global #Quad2 heights do. |
