Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
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Altogether, the Macro Market’s message, from a Sector & Factor Exposure perspective was simply that being long of The Cycle continues to get you paid, whereas being long of the crowd’s consensus positioning at particular points in The Game doesn’t. And what do you learn from all this scoring of the game within The Game? A: Be Macro and Factor Aware. And, while you are at it, like my good friend Floki from Vikings taught me, humbly submit to the gods – the market gods of price, volume, and volatility, that is… embracing the uncertainty that, at any given point in The Game, you can and will be wrong. Let’s define ‘wrong’ using my TRADE, TREND, and TAIL durations: A) Immediate-term TRADEs are often head-fakes … but sometimes the beginning of new @Hedgeye TRENDs On the long-term TAIL duration (3 years or less), just be Macro Aware of the big stuff like the sun doesn’t revolve around the earth and “rubbing dog urine on your face has anti-aging benefits” (Manson, pg 115!). |
