This year has been market mayhem… for some. Here a quick recap of the carnage (year-to-date drawdowns): Nasdaq: -20%
S&P 500: -12%
Russell 2000: -14%
Bitcoin: -19%
If you want an investment process that helps you protect your hard-earned capital from drawdowns, while also catching the upside, keep reading. Hedgeye CEO Keith McCullough began warning Hedgeye subscribers of an impending #Quad4 crash in September 2021. What’s #Quad4? It’s an environment in which economic growth and inflation are decelerating, at the same time. Simply put, when #Quad4 hits, risky assets crash. LONG GOLD VS. SHORT NASDAQ Our Long Gold vs. Short Nasdaq pair has worked: Gold (GLD): +8.7%
Nasdaq (QQQ): -20.6%
It’s. All. About. Timing. And it doesn’t get much clearer than “SHORT QQQ’s NOW.” (data since February 10, 2022, Early look titled “SHORT QQQ’s NOW”) RATE HIKES = BUY BONDS While Wall Street calls for 5,6,7 rate hikes, we’re calling for 1 to 2 hikes, and then done. How do we express that? BUY BONDS, SHORT JUNK. We’ve long of deflation all year, adding positions across the yield curve. We’re long Long-Term Treasuries (TLT) and we’re short of High Yield (HYG). Why? Because in #Quad4, the yield curve flattens, credit spreads blowout, and the Fed simply *cannot* hike to the heavens. OIL = DEEP #QUAD4 Oil (WTI) has been absolutely ripping. And all that does is CEMENT our Deep #Quad4 in Q2 call. As McCullough highlighted in a recent The Macro Show: IT’S ALL ABOUT MARKET TIMING.
What was a surprise to some was an opportunity for #HedgeyeNation. When markets came off their COVID cycle highs and crashed, who got investors out? Hedgeye CEO Keith McCullough did. Preserve and protect your portfolio today. Get high octane investing analysis from the firm who called the crash. Subscribe to be ahead of the investment game: https://accounts.hedgeye.com/products