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.”