CHART OF THE DAY: This Market Will Stress Test Your Inside View

03/03/21 07:55AM EST

Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.

Consider the alternative to owning pure, unadulterated “secular” and “pure high quality growth” in a Globally Diversified #Quad2 portfolio where you’re also “Underweight” or Short Long-term Treasuries (TLT), Utilities (XLU)… and did I say Gold?

  1. Long Commodities (CRB Index, Oil, Copper, etc.) and their related Equities (FCX, OXY, FANG, etc.)
  2. Long HIGH BETA (SPHB) vs. Short Momentum (MTUM)
  3. Long Asian Equity markets like India (INDA)

India (INDA) was up another +2.2% overnight taking its 1-month price momentum to +3.5%. It did not care that SPY’s LARGE CAP Factor Exposure (see Chart of The Day) was down -0.6% yesterday or that LOW BETA is down -2.0% in the last month.

Yes, this and every Early Look is meant to trigger and test your belief-system. What you want to be true isn’t always true. The market doesn’t lie to itself like some pension fund saying “the market has it wrong on inflation”… people do.

CHART OF THE DAY: This Market Will Stress Test Your Inside View - Chart of the Day

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