[WEBCAST REPLAY] Powell’s Panic Cut. McCullough’s Response → A Reality Check

THE POWELL FED PANICKED YESTERDAY.
As 1) global asset markets were nosediving 2) rates futures fully pricing in a 50 basis point cut for March and 3) investors facing a deepening Quad 4 outlook, the Fed attempted to placate anxious investors with an emergency 50 basis point cut.

It didn’t work.

Shortly after the news broke, Hedgeye CEO Keith McCullough held a flash webcast updating investors on the key investing implications.

Here’s a taste:

"The economic conditions and the market volatility being what they are it could certainly perpetuate a potential stock market crash. It wouldn’t be hard to have a -20% decline from its most recent all-time high. We’re already more than halfway there…

The last time the Fed cut interest rates by 50 basis points was in 2008. Not a good reference point. The last time we had a market up day like yesterday (up +4.6%) was back in October of 2008."

Below we’ve transcribed critical callouts from this webcast. Click to watch the entire 30-minute discussion.

[Endthefedplease]

Oh my word how do you only have 25k subscribers? Some of the best finance commentary PERIOD. Top caliber. Thank you Keith!

[jugodegolf]

Thankful for your Honesty and wishing Your team success.

[alvinrodgers]

Thank you You were in top of your game today

[cupandhandletradinggroup]

"I go both ways... and I like it." :) Love your channel, will be subscribing to your paid service soon. (I first found you in a Real Vision Finance interview).

[nicolasallen]

Bonds will work until they don't. When the supply shock juices inflation, the bond market will tank.

[EduardoLima]

Is there a book one can read to learn about Keith’s quads and his system?

[danielahlquist]

So... the ISM actually raced to a one year high.

[guytech]

Its obvious that the economy is retracting as numerous US companies warned on guidance as well as we can see Hotel with lots of empty rooms and lots of empty seats airline planes. The Market started corrected before any Fed actions so the Fed is just following and not leading. Regardless if the Fed Cut or not, markets will continue to decline.



I suspect that a lot of market volatility is caused by massive short selling as fund managers are using the crisis to chase quick profits. However, I do believe money is exiting as we even during the upswings we see Treasury yields continue to decline. Thus its likely Investors are pulling money out during the upswings (ie short coverings).

[sonnyandreotte]

notice the bombastic hyperbolic talk is really muted, hes concerned. so should everyone.

[EssittoRusko]

Nice covid 19 cough for context at 0:03 Lolol

[jordanaraujo]

What a legend. Keith rides this market like it's his whipped pony.

[michaelkestrel]

The only people scared are those still in the market