Quote of the Day: Gravity Doesn’t Care About Narratives

In his morning commentary Hedgeye’s Keith McCullough spoke to our earlier post with regard to commodities (“flation”), as well as to our latest reporting on the bearish action in corporate credit:

Emphasis mine…

“Facts just don’t go away. High yield spreads went down 4 basis points yesterday. That’s not a lot, in fact that’s barely even down on the day. So they have been able to pump stock markets: FOMO (fear of missing out) futures taking advantage of the media’s narrative; it needs to be the narrative. But again gravity doesn’t care about narratives; it will occur on a trending basis. And the fact of the matter is that high yield, and junk, the most speculative part of credit, and levered long investments that a lot of people have, are looking to me what they should look like going right into the thralls of Quad-3 economic stagflation here in the 3rd quarter.”

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