Cash Is King (In #Quad4)

In this clip from The Macro Show this morning, Hedgeye CEO Keith McCullough explains why the U.S. Dollar is the number one asset allocation to have in a #Quad4 market environment - and how it’s inversely correlated to the S&P 500 on an immediate-term basis.

“If you did not implement a #Quad4 portfolio, you did not know that the fulcrum position in a #Quad4 portfolio is the dollar. It’s cash,” explains McCullough.

“That’s what happens when the correlation risk goes to basically 1, in this case it’s -1. The stock market is directly correlated to the inverse of the dollar, because people are going to cash, and stocks are crashing.”

[johntrolle]

Keith knows everything- after the fact-

[rchicks]

Cash is getting killed by commodities—food, gas, oil, household goods, etc in “quad 4”.

[setaroper]

like the man said, cash is king so no wonder he wants our cash

[moviehipster]

Has anyone seen my quad?
I lost my quad....
Keith has 4 quads, im just going to take one of his. Hes quad rich.

[wilfhigginson]

Didn’t join Hedgeye spring of ‘21 cause with a small portfolio I thought it was too expensive. Turns out not joining was more expensive 😂

[dano]

While running at double digit inflation cash can’t be king for too long…

[travissmith]

This did not age well. SPY is up +11%.